KBRA assigns preliminary ratings to a term bond issued by New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series 2022A (“NYSERDA 2022A”), a consumer solar loan and home improvement loan ABS transaction.

NYSERDA will issue a $9.405 million term bond and nine serial bonds which total $15.225 million. The serial bonds have maturity dates ranging from 2023 through 2031 and the term bonds mature in 2037. The NYSERDA 2022A Bonds are not guaranteed by NYSERDA and are non-recourse. The credit enhancement levels are sufficient to cover KBRA’s corresponding stressed cash flow assumptions for the rating on the bonds.

This transaction represents New York State Energy Research and Development Authority’s (“NYSERDA” or the “Authority”) first term ABS securitization of 2022 and fourth KBRA-rated securitization. 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. 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. In this transaction, NYSERDA is issuing one term bond and nine serial bonds (collectively, the “NYSERDA 2022A Bonds”). The transaction is structured with all bonds supported by overall enhancement of 41.32% (overcollateralization plus amounts deposited into the reserve account). Although the Issuer is not structured as a special purpose vehicle, under current law, NYSERDA is not authorized to seek protection from its creditors pursuant to the United States Bankruptcy Code.

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 Company. Operative agreements and legal opinions will be reviewed prior to closing.

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Related Publications

• Global Consumer Loan ABS Rating Methodology
• 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) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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