NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to eight classes of notes issued by New York State Energy Research and Development Authority Residential Solar Financing Green Revenue Bonds, Series 2018A (“NYSERDA 2018A Bonds”).
NYSERDA will issue a term bond and seven serial bonds in an aggregate principal amount of $18.5 million with an expected closing date of March 21, 2018. The solar loans are unsecured consumer loans to borrowers in the State of New York. This transaction is structured with all senior bonds supported by overall enhancement of 28.90% (overcollateralization plus reserve account). This transaction will contain approximately $25 million of solar loans at closing out of an expected collateral balance of $25.5 million after completion of the three-month prefunding period.
New York State Energy Research and Development Authority (“NYSERDA”) is a public benefit corporation created in 1975 pursuant to Title 9, Article 8 of the Public Authorities Law of the State of New York, as amended (known as the New York State Energy Research and Development Authority Act). NYSERDA was formed to develop and encourage the use of energy conservation technologies by developing and implementing new energy technologies consistent with economic, social and environmental objectives.
KBRA applied its Global General Rating Methodology for Asset-Backed Securities as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA has performed an operational review of Concord in October 2017 at their headquarters in Scottsdale, AZ and had a call with NYSERDA, as well as a review of the transaction’s legal structure and transaction documents. KBRA will review operative agreements and legal opinions for the transaction prior to closing.
Preliminary Ratings Assigned: New York State Energy Research
Expected Initial Class
|Serial 2020||A (sf)||$1,600,000|
|Serial 2021||A (sf)||$1,500,000|
|Serial 2022||A (sf)||$1,500,000|
|Serial 2023||A (sf)||$1,300,000|
|Serial 2024||A (sf)||$1,100,000|
|Serial 2025||A (sf)||$1,100,000|
|Serial 2026||A (sf)||$1,000,000|
|Term 2034||A (sf)||$9,400,000|
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.
Related Publications: (available at www.kbra.com)
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