DBRS Assigns and Confirms Rating on OnDeck Account Receivables Trust 2013-1 LLC

DBRS, Inc. (DBRS) has today confirmed the rating of A (low) (sf) on the Class A Revolving Loan Note and assigned a rating of BBB (low) (sf) to the Class B Revolving Loan Note issued by OnDeck Account Receivables Trust 2013-1 LLC (OnDeck) under the Third Amended and Restated Credit Agreement dated as of June 17, 2016. OnDeck 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), which can be found on our website under Methodologies.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.