KBRA Assigns Preliminary Ratings to NYSERDA Green Revenue Bonds, Series 2026A

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to five 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 2026A ("NYSERDA 2026A”), a $47.59 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 2027 through 2031 and the term bond matures in 2041. The NYSERDA 2026A Bonds are not guaranteed by NYSERDA and are non-recourse. The transaction is structured with all bonds supported by overall enhancement of 45.80% (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, and Global Structured Finance Counterparty 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 will be reviewed prior to closing.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• ABS: Consumer Loan ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty 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: 1015073