DBRS Finalizes Provisional Ratings on OnDeck Asset Securitization Trust II LLC, Asset-Backed Notes, Series 2016-1

DBRS, Inc. (DBRS) has today finalized the provisional ratings on the following classes of notes issued by OnDeck Asset Securitization Trust II LLC (the Issuer).

-- Series 2016-1 Asset-Backed Notes, Class A rated A (sf)
-- Series 2016-1 Asset-Backed Notes, Class B rated BBB (low) (sf)

The ratings are based on DBRS’s review of the following analytical considerations:
--Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
--The transaction parties’ capabilities with regard to origination, underwriting and servicing.
--Credit quality of the collateral pool and the historical performance of OnDeck Capital Inc.’s (OnDeck) small business loan portfolio.
--The transaction incorporates both collateral performance triggers and servicer financial covenants that will be expected to protect the noteholders in a stressed environment.
--The structure and presence of legal opinions, which address the true sale of the assets to the Issuer, the non-consolidation of the Issuer with OnDeck and the trustee’s valid first-priority security interest in the collateral assets.

Notes:
The applicable methodology is Rating Methodology for CLOs and CDOs of Large Corporate Credit, which can be found on our website under Methodologies.

The full report providing additional analytical detail is available by clicking on the link or by contacting us at info@dbrs.com.

Please see the attached appendix for additional information regarding sensitivity of assumptions used in the rating process.