Series 2018-1 Asset Backed Notes, Class A at AA (sf)
Series 2018-1 Asset Backed Notes, Class B at A (sf)
Series 2019-1 Fixed Rate Asset Backed Notes, Class A at
Series 2019-1 Fixed Rate Asset Backed Notes, Class B at AA (sf)
Series 2019-1 Fixed Rate Asset Backed Notes, Class C at A (sf)
DBRS Morningstar also placed the following ratings of the Issuer Under Review with Negative Implications:
Series 2018-1 Asset Backed Notes, Class C
Series 2018-1 Asset Backed Notes, Class D
Series 2019-1 Fixed Rate Asset Backed Notes, Class D
Series 2019-1 Fixed Rate Asset Backed Notes, Class E
Due to the widespread shutdown of economic activity throughout the
DBRS Morningstar's review of the most recently reported collateral performance (as at the
The rating actions are based on the following analytical considerations:
(1) Small businesses are especially vulnerable to the impact from the coronavirus outbreak in several different respects, including sharply lower or non-existent consumer foot traffic, supply chain disruptions, and the possibility of employee absences. Stay-at-home measures and closures of non-essential businesses enacted by government authorities throughout the
(2) The information about the extent of the impact of the coronavirus on originations, underwriting, operations, and portfolio performance to date, which was shared with DBRS Morningstar by On Deck.
(3) DBRS Morningstar's assessment as to how collateral performance could deteriorate due to macroeconomic stresses brought about by the coronavirus pandemic.
(a) In conjunction with DBRS Morningstar's commentary 'Global Macroeconomic Scenarios: Implications for Credit Ratings' published on
(b) In the moderate scenario, DBRS Morningstar currently expects that the coronavirus will begin to be contained during Q2 2020, resulting in a gradual relaxation of stay-at-home measures and non-essential business closures, allowing a gradual economic recovery to begin starting in 3Q 2020. Additional information regarding DBRS Morningstar's set of macroeconomic scenarios for select economies related to the COVID-19 pandemic can be found in DBRS Morningstar's 'Global Macroeconomic Scenarios: Implications for Credit Ratings' commentary. (please Insert Link)
(4) A potentially material impact of
(5) The relative benefit from geographical and industry diversification of the collateral pool.
When a rating is placed Under Review with Negative Implications, DBRS Morningstar seeks to complete its assessment and remove the rating from this status as soon as appropriate. Upon the resolution of the Under Review status, DBRS Morningstar may confirm or downgrade the ratings on the affected classes.
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.
Notes:
The principal methodology is the DBRS Master
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.
For more information regarding structured finance rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/358308.
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.
Tel. +1 212 806-3277
Ratings
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
20-Apr-20 Series 2018-1 Asset Backed Notes, Class A Confirmed AA (sf) -- US
20-Apr-20 Series 2018-1 Asset Backed Notes, ClassB Confirmed A (sf) -- US
20-Apr-20 Series 2018-1 Asset Backed Notes, Class C UR-Neg. BBB (sf) -- US
20-Apr-20 Series 2018-1 Asset Backed Notes, Class D UR-Neg. BB (high) (sf) -- US
Date Issued Debt Rated Action Rating Trend Issued
i
US =
CA = Canada Issued, NRSRO
EU = EU Issued, NRSRO
E = EU endorsed
Unsolicited Participating With Access
Unsolicited Participating Without Access
Unsolicited Non-Participating
20-Apr-20 Series 2019-1 Fixed Rate Asset Backed Notes, Class A ConfirmedAAA (sf) -- US
20-Apr-20 Series 2019-1 Fixed Rate Asset Backed Notes, Class B Confirmed AA (sf) -- US
20-Apr-20 Series 2019-1 Fixed Rate Asset Backed Notes, ClassC Confirmed A (sf) -- US
20-Apr-20 Series 2019-1 Fixed Rate Asset Backed Notes, Class D UR-Neg. BBB (sf) -- US
20-Apr-20 Series 2019-1 Fixed Rate Asset Backed Notes, Class E UR-Neg. BB (high) (sf) -- US
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