KBRA Affirms Ratings on Texas Natural Gas Securitization Finance Corporation
18 Apr 2024 | New York
KBRA affirms its ratings on two tranches (each a Tranche) issued by Texas Natural Gas Securitization Finance Corporation , a customer rate relief (CRR) ABS transaction. The transaction allows several utility companies to recover the stranded costs that had resulted from a large imbalance between the supply and demand of natural gas between utility companies and consumers in February 2021 when winter storm Uri hit the State of Texas, bringing low temperatures, snow, and freezing rain for multiple consecutive days. The Tranches are collateralized by the customer rate relief property, which consists of the right to impose, bill, collect, and receive the customer rate relief charge from the existing and future customers of the participating gas utilities, as well as the scheduled and interim adjustments to the CRR Charge (True-Up Adjustments). The data used for this review is as of the March 2024 reporting period (April 2024 payment date). To date, the securities have received timely interest payments and scheduled principal payments, if applicable.
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