KBRA Assigns Preliminary Ratings to NYCTL 2019-A Trust

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) announces the preliminary ratings on the bonds of NYCTL 2019-A Trust, a property tax lien ABS transaction.

This transaction represents the 25th sale and subsequent term securitization of tax liens by The City of New York (the “City”). The collateral pool is comprised of 3,182 property tax liens with an aggregate initial adjusted redemptive value (equal to the redemptive value plus recoverable lien administration expenses as of such date) of approximately $89.4 million. This includes approximately $64.6 million aggregate initial redemptive value of tax liens in the first sale on August 2, 2019 and approximately $24.8 million aggregate initial adjusted redemptive value of tax liens in the second sale on August 28, 2019 (the “Second Sale Tax Liens”). The tax liens arose from unpaid real property taxes, assessments, sewer rents, sewer surcharges, water rents and other charges imposed by the City, in the case of water and sewer charges, the New York City Water Board. 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. Pursuant to the transaction documents, the Indenture Trustee is also required to advance the lesser of $7.5 million or 10% of the then current aggregate tax lien principal balance to pay interest on the bonds, providing additional liquidity to the transaction.

KBRA analyzed the transaction using the Property Tax Lien ABS Rating Methodology and the Global Structured Finance Counterparty Methodology published on September 19, 2014 and August 8, 2018. In applying the methodologies, KBRA analyzed the underlying collateral pool, as well as the historical redemption rates of property tax liens in the jurisdictions in which the properties related to the collateral are located.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings. Please see the following ratings below:


Preliminary Rating

Initial Principal Balance

Class A

AAA (sf)


To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)


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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.


Usman Khan, Director

(646) 731-2488

[email protected]

James Chiavaro, Analyst

(646) 731-2383

[email protected]

Business Development:
Arielle Smelkinson, Director

(646) 731-2369

[email protected]

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