DBRS Assigns Rating to OnDeck Account Receivables Trust 2013-1 LLC

DBRS, Inc. (DBRS) has today assigned a rating of A (low) (sf) to the Class A Revolving Loan Note issued by OnDeck Account Receivables Trust 2013-1 LLC (OnDeck) under the Second Amended and Restated Credit Agreement, dated as of October 7, 2015. OnDeck Account Receivables Trust 2013-1 LLC is a warehouse provided to OnDeck Capital, Inc. for the financing of small business loan receivables. OnDeck Capital, Inc. acts as the servicer for the facility.

The rating is based upon a review by DBRS of the following analytical considerations:
-- Transaction capital structure, assigned rating and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to originations, underwriting and servicing.
-- The credit quality of the collateral and the performance of OnDeck’s small business loan portfolio and overall portfolio.
-- The transaction has both collateral pool and servicer financial solvency performance triggers that protect the noteholders in stressed environments.
-- The legal structure and presence of legal opinions, which address the true sale of the assets to the issuer, the non-consolidation of the special-purpose vehicle with OnDeck, and that the trust has a valid first-priority security interest in the assets and is consistent with the DBRS methodology “Legal Criteria for U.S. Structured Finance.”

Notes:
The applicable methodologies are Rating CLOs and CDOs of Large Corporate Credit and Rating CLOs Backed by Loans to Small and Medium-Sized European Enterprises (SMEs), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.