DBRS Morningstar Confirms Ratings on Six College Ave Student Loans Transactions.
ENPNewswire-May 3, 2022--DBRS Morningstar Confirms Ratings on Six College Ave Student Loans Transactions
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Release date- 02052022 - DBRS, Inc. (DBRS Morningstar) confirmed its ratings on all classes of securities included in six College Ave Student Loans transactions.
The confirmations are based on 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 March 2022 Update,' published on March 24, 2022. These baseline macroeconomic scenarios replace DBRS Morningstar's moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020. Despite several new or increasing risks including the Russian invasion of Ukraine, rising inflation, and new coronavirus variants, the overall outlook for growth and employment in the United States remains relatively positive.
The transaction capital structure and credit enhancement levels are sufficient for the current ratings.
Credit enhancement is in the form of overcollateralization, reserve account, 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.
Collateral performance is within expectations, and cumulative net losses remain low. Forbearance and delinquency levels remain relatively stable.
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 U.S. dollars unless otherwise noted
The principal methodology is DBRS Morningstar Master U.S. ABS Surveillance (January 27, 2022), which can be found on dbrsmorningstar.com under Methodologies & Criteria.
The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.
The rated entity or its related entities did not...
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