Credit rating agency KBRA has assigned preliminary ratings to the New York State Energy Research and Development Authority's (NYSERDA) new Residential Clean Energy and Energy Efficiency Financing Green Revenue Bonds, Series 2024A. This includes a $14.85 million term bond and nine serial bonds totaling $30.88 million. The bonds are the sixth KBRA-rated securitization for NYSERDA. 

The purpose of the bonds is to support a consumer solar loan and home improvement loan asset-backed securities (ABS) transaction. This is the first term ABS securitization that NYSERDA has conducted in 2024. 

NYSERDA’s Green Jobs - Green New York program offers the solar and energy efficiency loans that will be supported by the bond proceeds. 

In its assessment of the bond, KBRA considered factors such as the structure of the transaction, the composition of the underlying loan pool, and the legal and operational framework. The agency also looked at NYSERDA’s overall financial health and its track record with previous securitizations.

Based on the analysis, KBRA assigned a rating to each tranche of bonds that reflects the agency’s opinion on the likelihood that investors will receive full and timely repayment of the principal and interest due. The final ratings are contingent on KBRA’s review of the final legal documents and the closing of the securitization.