CREDIT RATING RATIONALE
The provisional credit ratings are based on Morningstar DBRS' review of the following considerations:
(1) The transaction's form and sufficiency of available credit enhancement.
Overcollateralization, subordination of the Class
Transaction cash flows are sufficient to repay investors under all
(2) The sequential-pay structure.
(3) Structural features of the transaction that require the Class A Notes to enter into full turbo principal amortization under certain circumstances.
(4) The quality and credit characteristics of the student loans and underlying borrowers.
(5) The ability of the servicer and subservicer to perform collections on the collateral pool and other required activities.
(6) The legal structure and legal opinions that address the true sale of the student loans, the nonconsolidation of the trust, that the trust has a valid first-priority security interest in the assets, and the consistency with Morningstar DBRS' Legal Criteria forU.S. Structured Finance.
Morningstar DBRS' credit ratings on the securities referenced herein address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations for each of the rated notes are the related Noteholders' Interest Distribution Amount, including unpaid interest from the preceding distribution date, and the related Principal Amount.
Morningstar DBRS' credit ratings do not address non-payment risk associated with contractual payment obligations contemplated in the applicable transaction documents that are not financial obligations. The associated contractual payment obligation that is not a financial obligation for each of the rated notes is the interest on any unpaid interest from the preceding distribution date.
Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. The Morningstar DBRS short-term debt rating scale provides an opinion on the risk that an issuer will not meet its short-term financial obligations in a timely manner.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.
A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings https://dbrs.morningstar.com/research/427030/morningstar-dbrs-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings (
Notes:
All figures are in
The principal methodology applicable to the credit rating is Rating
Other methodologies referenced in this transaction are listed at the end of this press release.
The credit rating was initiated at the request of the rated entity.
The rated entity or its related entities did participate in the credit rating process for this credit rating action.
Morningstar DBRS had access to the accounts, management, and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.
This is a solicited credit rating.
A provisional credit rating is not a final credit rating with respect to the above-mentioned securities and may change or be different than the final credit rating assigned or may be discontinued. The assignment of final credit ratings on the above-mentioned securities is subject to receipt by Morningstar DBRS of all data and/or information and final documentation that Morningstar DBRS deems necessary to finalize the credit ratings.
Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.
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The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.
Rating
https://dbrs.morningstar.com/research/431204/rating-us-structured-finance-transactions
Operational Risk Assessment for
https://dbrs.morningstar.com/research/430003/operational-risk-assessment-for-us-abs-servicers
Operational Risk Assessment for
https://dbrs.morningstar.com/research/430004/operational-risk-assessment-for-us-abs-originators
Legal Criteria for
https://dbrs.morningstar.com/research/431205/legal-criteria-for-us-structured-finance
For more information on this credit or on this industry, visit dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.
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