DBRS Morningstar Confirms Ratings on EdLinc Student Loan Funding Trust 2017-A.
ENPNewswire-August 30, 2021--DBRS Morningstar Confirms Ratings on EdLinc Student Loan Funding Trust 2017-A
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Release date- 27082021 - DBRS, Inc. (DBRS Morningstar) confirmed its ratings on all classes of securities included in EdLinc Student Loan Funding Trust 2017-A.
The confirmations are based on the following analytical considerations:
The transaction assumptions consider DBRS Morningstar's set of macroeconomic scenarios for select economies related to the Coronavirus Disease (COVID-19) pandemic, available in its commentary 'Global Macroeconomic Scenarios: June 2021 Update,' published on June 18, 2021. DBRS Morningstar initially published macroeconomic scenarios on April 16, 2020, which have been regularly updated. The scenarios were last updated on June 18, 2021, and are reflected in DBRS Morningstar's rating analysis.
The assumptions consider the moderate and adverse macroeconomic scenarios outlined in the commentary, with the moderate scenario serving as the primary anchor for the current ratings. The moderate scenario factors in continued success in containment during the second half of 2021, enabling the continued relaxation of restrictions.
Collateral performance is within expectations and cumulative net losses remain low. Forbearance and delinquency levels remain relatively stable.
Transaction capital structure and credit enhancement levels are sufficient for the current ratings.
Credit enhancement is in the form of overcollateralization, reserve accounts, and excess spread, with senior notes benefiting from the subordination of junior notes. Credit enhancement levels are sufficient to support the DBRS Morningstar-expected default and loss severity assumptions under various stress scenarios.
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:
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (May 26, 2021), which can be found on dbrsmorningstar.com under Methodologies & Criteria.
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.
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