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KBRA Assigns Ratings to New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds

Strategic Insights

— 2 min read

The Kroll Bond Rating Agency (KBRA) has assigned ratings to the New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series 2025A (NYSERDA 2025A), a $60.0 million asset-backed securitization collateralized by residential solar loans and home improvement loans. The bonds are not guaranteed by NYSERDA and are non-recourse. The transaction is structured with all bonds supported by an enhancement of 47.19% (overcollateralization plus amounts deposited into the reserve account). KBRA's analysis considered NYSERDA's portfolio pool data, underlying collateral pool, and proposed capital structure under stressed cash flow assumptions. The Authority offers solar and energy efficiency loans to one-to-four family residential structures for eligible projects, as dictated by the Green Jobs - Green New York program.

Key Takeaways:

  • KBRA assigned ratings to the NYSERDA 2025A bonds, which are collateralized by residential solar loans and home improvement loans totaling $60.0 million.
  • The bonds have maturity dates ranging from 2026 through 2040 and are not guaranteed by NYSERDA, with an enhancement of 47.19%.
  • KBRA analyzed NYSERDA's portfolio pool data, underlying collateral pool, and proposed capital structure under stressed cash flow assumptions.
  • The Authority offers solar and energy efficiency loans to one-to-four family residential structures for eligible projects under the Green Jobs - Green New York program.
  • KBRA considered its operational review of NYSERDA, as well as periodic update calls with the Authority, and reviewed operative agreements and legal opinions prior to closing.

Statistics:

  • The NYSERDA 2025A bonds are collateralized by residential solar loans and home improvement loans totaling $60.0 million.
  • The transaction has an enhancement of 47.19% (overcollateralization plus amounts deposited into the reserve account).
  • The bonds have maturity dates ranging from 2026 through 2040.
  • NYSERDA was created in 1975 under the Public Authorities Law of the State of New York.
  • The Authority's Green Jobs - Green New York program offers solar and energy efficiency loans to one-to-four family residential structures for eligible projects.
  • KBRA applied its General Global Rating Methodology for Asset-Backed Securities as well as its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in assessing the credit rating of the NYSERDA 2025A bonds.

Sources:

  • New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series 2025A ("NYSERDA 2025A")
  • Kroll Bond Rating Agency (KBRA)
  • General Global Rating Methodology for Asset-Backed Securities
  • Consumer Loan ABS Global Rating Methodology
  • Global Structured Finance Counterparty Methodology
  • ESG Global Rating Methodology
  • Public Authorities Law of the State of New York
  • Green Jobs - Green New York program
  • BusinessWire: Kroll Bond Rating Agency (KBRA) Assigns Ratings to New York State Energy Research and Development Authority Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds

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