KBRA Assigns Ratings to NYSERDA Green Revenue Bonds, Series 2025A
21 May 2025 | New York
KBRA assigns ratings to nine serial bonds and one term bond issued by New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series 2025A ("NYSERDA 2025A”), a $60.0 million asset-backed securitization collateralized by residential solar loans and home improvement loans originated by New York State Energy Research and Development Authority (“NYSERDA” or the “Authority”). The serial bonds have maturity dates ranging from 2026 through 2034 and the term bond matures in 2040. The NYSERDA 2025A Bonds are not guaranteed by NYSERDA and are non-recourse. The transaction is structured with all bonds supported by overall enhancement of 47.19% (overcollateralization plus amounts deposited into the reserve account).
NYSERDA is a public benefit corporation created in 1975 pursuant to the Public Authorities Law of the State of New York. The Authority is dedicated to the development and adoption of energy conservation technologies consistent with economic, social and environmental objectives across the state. To this end, NYSERDA offers solar and energy efficiency loans to one-to-four family residential structures for eligible projects, as dictated by NYSERDA’s Green Jobs - Green New York program (“GJGNY Program”).
KBRA applied its General Global Rating Methodology for Asset-Backed Securities as well as its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology. In applying the methodologies, KBRA analyzed NYSERDA's portfolio pool data, underlying collateral pool and proposed capital structure under stressed cash flow assumptions. KBRA considered its operational review of NYSERDA, as well as periodic update calls with the Authority. Operative agreements and legal opinions were reviewed prior to closing.
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