KBRA Assigns Preliminary Rating to NYCTL 2025-A Trust

NEW YORK--(BUSINESS WIRE)--KBRA assigns a preliminary rating to one class of notes issued by NYCTL 2025-A Trust, a $172.5 million property tax lien ABS transaction. Proceeds from the Notes will be used to acquire a portfolio of 3,915 property tax liens in New York City with a redemptive value of approximately $220.0 million and a weighted average interest rate of 9.5%. The $220.0 million principal balance largely consists of residential properties (74.0%), followed by commercial and industrial properties (22.4%), vacant land (3.3%), and miscellaneous land (0.3%). The transaction also features liens securing unpaid water rents, sewer rents, and sewer surcharges on certain applicable properties, which comprise approximately $27.1 million (12.3%) of the initial tax lien portfolio. These liens maintain the same first-priority position as traditional property tax liens.

This transaction represents the 27th sale and subsequent term securitization of tax liens by the City of New York. The collateral pool will be composed of property tax lien certificates related to properties within New York City. Of the previous 26 transactions issued by the City since 1996, all have fully repaid bondholders.

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Methodologies

• ABS: Property Tax Lien ABS Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011099