Rating Action: Moody’s assigns provisional rating to NYC-sponsored tax lien collateralized bondsGlobal Credit Research – 10 Feb 2022New York, February 10, 2022 — Moody’s Investors Service (“Moody’s”) has assigned a provisional rating of (P)Aaa (sf) to the Class A tax lien asset backed bonds to be issued by NYCTL 2021-A Trust, sponsored by The City of New York (NYC, Aa2 stable). The transaction is collateralized by a static pool of unpaid tax liens levied on commercial and residential properties, including unpaid real property taxes, assessments, and other city infrastructure and service charges.The complete rating action is as follows:Issuer: NYCTL 2021-A Trust, Tax Lien Collateralized Bonds, Series 2021-A$88,864,000 Fixed Rate Class A Tax Lien Collateralized Bonds, Assigned (P)Aaa (sf)RATINGS RATIONALEThe provisional rating of (P)Aaa (sf) assigned to the notes is based primarily on the following factors:(1) the credit quality of the underlying collateral pool, which has a weighted average initial lien-to-value (LTV) ratio of 15.4%, higher than the 2019-A pool weighted average LTV ratio of 9.7%, and around 69% of liens carrying an initial LTV ratio of less than 20%. The initial LTV ratio is defined as the sum of the initial principal balance of the securitized tax liens and any pari passu liens, divided by the full value of the property as estimated by and reflected in the records of the Department of Finance of the City of New York;(2) the strong historical performance of prior securitized NYC tax lien collateral pools with high redemption rates and low severity of loss on tax liens attached to properties that have been liquidated in a foreclosure sale;(3) the level of credit enhancement available to support the bonds, which will consist of over-collateralization equal to 20.0% of the initial principal balance of the securitized liens, and excess spread in the form of penalty interest that accrues on delinquent tax liens and is realized upon lien redemption or through foreclosure sale proceeds, if available;(4) the full turbo amortization structure in which all excess spread, after the payment of transaction expenses and bond interest, is used to amortize principal of the bonds;(5) the ability of NYC (Aa2 stable) as the seller of the collateral to honor its representations and warranties, including the obligation to repurchase defective liens;(6) the level of available liquidity support, which will be provided by an interest reserve account and a working capital reserve account, as supplemented by limited advancing by The Bank of New York Mellon (Aa1/P-1 stable) as the indenture trustee;(7) the experience of MTAG Services, LLC (unrated) and Tower Capital Management, LLC (unrated) as servicers, to collect on the unpaid tax liens and foreclose upon, manage and liquidate the underlying real estate properties including distressed and bankrupt properties, as well as the responsibility of the indenture trustee to act as the successor servicer; and(8) the legal and structural aspects of the transaction.METHODOLOGICAL APPROACHThe principal methodology used in this rating was “US Tax Lien-Backed Securitizations Methodology” published in May 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1223471. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.Factors that would lead to an upgrade or downgrade of the rating:Factors or circumstances that could drive the rating down are a significant decline in the real estate values in the five boroughs of the City of New York or extreme weather fluctuations and natural disasters affecting the real estate values of the City of New York. Additionally, if longer term foreclosure moratoriums are instituted , similar to those put in place owing to the COVID-19 pandemic, that have since expired, the resulting slowdown in redemptions and reduced cashflows could impact ratingsREGULATORY DISCLOSURESFor further specification of Moody’s key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody’s Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.The analysis includes an assessment of collateral characteristics and performance to determine the expected collateral loss or a range of expected collateral losses or cash flows to the rated instruments. As a second step, Moody’s estimates expected collateral losses or cash flows using a quantitative tool that takes into account credit enhancement, loss allocation and other structural features, to derive the expected loss for each rated instrument.Moody’s quantitative analysis entails an evaluation of scenarios that stress factors contributing to sensitivity of ratings and take into account the likelihood of severe collateral losses or impaired cash flows.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody’s rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider’s credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The rating has been disclosed to the rated entity or its designated agent (s) and issued with no amendment resulting from that disclosure.This rating is solicited. Please refer to Moody’s Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody’s general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the EU and is endorsed by Moody’s Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody’s office that issued the credit rating is available on www.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody’s affiliates outside the UK and is endorsed by Moody’s Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody’s office that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Gideon Lubin Vice President – Senior Analyst Structured Finance Group Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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