The provisional ratings are based on DBRS Morningstar's review of the following analytical considerations:
The transaction assumptions consider DBRS Morningstar's baseline macroeconomic scenarios for rated sovereign economies, available in its commentary 'Baseline Macroeconomic Scenarios for Rated Sovereigns,' published on
Transaction capital structure, proposed ratings, and form and sufficiency of available credit enhancement.
The ability of the transaction to withstand stressed cash flow assumptions and repay investors in accordance with the terms of the
The sequential-pay structure.
Structural features of the transaction that require the Class A Notes to enter into full turbo principal amortization under certain circumstances.
The quality and credit characteristics of the student loans and underlying borrowers.
The ability of
The legal structure and expected presence of legal opinions that will 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 the DBRS Morningstar 'Legal Criteria for
The collateral backing the Notes will consist of fixed-rate and variable-rate student loan refinancings. Earnest, which was acquired by
ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/373262.
Notes:
All figures are in
The principal methodology is Rating
For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.
The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.
Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.
For more information on this credit or on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.
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Ratings
Date Issued Debt Rated Action Rating Trend Attributesi
US = Lead Analyst based in USA
CA = Lead Analyst based in
EU = Lead Analyst based in EU
E = EU endorsed
U =
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-participating
15-Sep-21 Class A Provis.-NewAAA (sf) -- US
15-Sep-21 Class B Provis.-New AA (sf) -- US
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