KBRA Assigns Ratings to New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series, 2024A
18 Jul 2024 | New York
KBRA assigns ratings to NYSERDA Green Revenue Bonds, Series 2024A (“NYSERDA 2024A”), a consumer solar loan and home improvement loan ABS transaction.
This transaction represents New York State Energy Research and Development Authority’s (“NYSERDA” or the “Authority”) first term ABS securitization of 2024 and sixth KBRA-rated securitization. NYSERDA issued a $15.38 million term bond and nine serial bonds which total $30.88 million. The serial bonds have maturity dates ranging from 2025 through 2033 and the term bonds mature in 2039. The NYSERDA 2024A Bonds are not guaranteed by NYSERDA and are non-recourse. The transaction is structured with all bonds supported by overall enhancement of 42.10% (overcollateralization plus amounts deposited into the reserve account). The credit enhancement levels are sufficient to cover KBRA’s corresponding stressed cash flow assumptions for the rating on the bonds.
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 the General Global Rating Methodology for Asset-Backed Securities as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool, and capital structure. KBRA considered its operational reviews of NYSERDA, as well as periodic due diligence calls with the Authority. Operative agreements and legal opinions were reviewed prior to closing.
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