KBRA assigns preliminary rating to one class of notes issued by NYCTL 2021-A Trust (“NYCTL 2021-A”), a property tax lien ABS transaction.

This transaction represents the 26^th sale and subsequent term securitization of tax liens by The City of New York (“NYC” or the “City”). The collateral pool will be composed of property tax lien certificates related to properties in New York City. The City has issued 25 tax lien ABS transactions since 1996. Of the previous 25 transactions, 24 have fully repaid bondholders, while the 2019-A bonds remain outstanding and have made all scheduled interest payments.

The collateral for NYCTL 2021-A consists of 2,451 property tax liens in New York City with an aggregate initial adjusted redemptive value (equal to the redemptive value plus recoverable lien administration expenses as of such date) of approximately $111.1 million. The tax liens result from unpaid real property taxes, assessments, and other charges imposed by the City. The 2021-A transaction will not include any water and sewer liens. The underlying properties are located in the five boroughs of the City.

As part of the transaction, a working capital reserve fund with an initial balance of $3.4 million may be used to pay certain lien administration expenses. In addition, the transaction features an interest reserve fund with a required minimum balance initially equal to three months of interest on the original principal balance of the bonds and remains equal to such amount until such amount is equal to or greater than six months of interest on the outstanding bond balance.

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Related Publications

• Property Tax Lien 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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