DBRS Finalizes Provisional Ratings on SoFi Consumer Loan Program 2016-1

DBRS, Inc. (DBRS) has today finalized its provisional ratings of A (sf) on the Class A Notes (Notes) issued by SoFi Consumer Loan Program 2016-1 (SCLP 2016-1). The DBRS ratings of the Notes address the timely payment of interest and the full payment of principal in accordance with the terms and conditions of the SCLP 2016-1 transaction documents.

The finalized ratings are based on DBRS’s review of the following analytical considerations:

-- The transaction’s form and sufficiency of available credit enhancement.
-- The quality and credit characteristics of the consumer loan borrowers.
-- Structural features of the transaction that require the Notes to enter into full turbo principal amortization if certain performance triggers are breached or if credit enhancement deteriorates.
-- The experience, underwriting and origination capabilities of SoFi.
-- The ability of the Servicer to perform servicing and collections on the collateral pool and other required activities.
-- The ability of Systems and Services Technologies to perform duties as a backup servicer.
-- The legal structure and legal opinions that address the true sale of the student loans, the non-consolidation of the trust, that the trust has a valid first-priority security interest in the assets and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

Transaction Description:
-- $379,800,000 Fixed-Rate Class A Notes at A (sf)

The notes are collateralized by a pool of fixed-rate (comprising 86% of the pool) and variable-rate (comprising 14% of the pool) unsecured consumer loans that fully amortize over their set maturity terms. Prior to their issuance, these loans were funded and owned by the sponsor.

The structure is relatively straightforward: a fully funded reserve account (0.50%) and overcollateralization (25.00%) support the rated Class A Notes. The Notes bear interest based on a fixed rate that will be paid on a monthly basis beginning on the distribution date in August 2016.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are Rating U.S. Structured Finance Transactions and U.S. Credit Card Asset-Backed Securities, 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.

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

The full report providing additional information and analytical detail is available by clicking on the link under Related Research at the right of the screen or by contacting us at info@dbrs.com.