Press Release|ABS

KBRA Affirms Ratings on Texas Natural Gas Securitization Finance Corporation

18 Apr 2024   |   New York


KBRA affirms its ratings on two tranches (each a Tranche) issued by Texas Natural Gas Securitization Finance Corporation , a customer rate relief (CRR) ABS transaction. The transaction allows several utility companies to recover the stranded costs that had resulted from a large imbalance between the supply and demand of natural gas between utility companies and consumers in February 2021 when winter storm Uri hit the State of Texas, bringing low temperatures, snow, and freezing rain for multiple consecutive days. The Tranches are collateralized by the customer rate relief property, which consists of the right to impose, bill, collect, and receive the customer rate relief charge from the existing and future customers of the participating gas utilities, as well as the scheduled and interim adjustments to the CRR Charge (True-Up Adjustments). The data used for this review is as of the March 2024 reporting period (April 2024 payment date). To date, the securities have received timely interest payments and scheduled principal payments, if applicable.

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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

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Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1004010

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