NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases its methodology for rating property assess clean energy (PACE) ABS transactions. The methodology addresses residential and commercial PACE assessments that are pari passu with ad valorem real property taxes, and are generally not subject to extinguishment upon sale of the property and are senior to all non-tax liens, including mortgage liens.
KBRA notes that the credit analysis of PACE ABS transactions can vary by transaction not only due to the collateral characteristics and transaction structure, but also due to the operational capabilities of the program administrator, assessment administrator and tax authority, the creditworthiness of any cities or counties, where the PACE assessments are domiciled and local statutes. KBRA’s rating of a PACE ABS transaction represents a blended analysis of these key qualitative and quantitative credit risk determinants.
Please click here to access the methodology.
About KBRA and KBRA Europe
KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.