DBRS Finalizes Provisional Ratings on J.G. Wentworth XXXVII LLC Fixed Rate Asset-Backed Notes, Series 2016-1

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following notes issued by J.G. Wentworth XXXVII LLC Fixed Rate Asset-Backed Notes, Series 2016-1:

-- $104,293,000 Series 2016-1, Class A Notes rated AAA (sf)
-- $13,000,000 Series 2016-1, Class B Notes rated BBB (sf)

The ratings for this transaction are based on DBRS analysis of the following:
-- Transaction capital structure and form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the ratings address the payment of timely interest on a monthly basis and principal by the legal final maturity date. The cash flow analysis is further described in the Credit Analysis section of the DBRS Presale Report.
-- Portfolio Financial Servicing Company (PFSC) functions as a hot backup servicer and could assume primary servicing within 30 days, if needed. DBRS has performed an operational risk review and found PFSC to be an acceptable backup servicer.
-- The Pool is backed by a diverse and highly rated Carrier group.
-- The transaction is supported by an established structure and is consistent with DBRS’s “Legal Criteria for U.S. Structured Finance” methodology. Legal opinions covering True Sale and non-consolidation are also provided.

The Series 2016-1 transaction represents the 44th term asset-backed securitization backed by collateral originated by the JGW subsidiaries and their predecessors offered pursuant to Rule 144A/Regulation S.

The rating on the Class A Note reflects the 17.00% of initial hard credit enhancement provided by Class B subordination (10.47%), the Reserve Account (1.00%) and overcollateralization (5.53%). The ratings on the Class B reflect 6.53% of initial hard credit enhancement provided by the Reserve Account (1.00%) and overcollateralization (5.53%). There is de minimis anticipated additional credit support provided through excess spread.

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

The applicable methodology is Rating U.S. Structured Settlements Asset-Backed Securitizations, 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 attached appendix for additional information regarding sensitivity of assumptions used in the rating process.

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