DBRS Assigns Rating to Prime OnDeck Receivable Trust II, LLC

DBRS, Inc. (DBRS) has today assigned a rating of A (low) (sf) as follows on the Class A Loans issued by Prime OnDeck Receivable Trust II, LLC (the Facility) under the Credit Agreement dated as of December 8, 2016. The Facility is a warehouse provided to On Deck Capital, Inc. (OnDeck) for the financing of small business loan receivables. OnDeck acts as the servicer for the Facility.

-- $200,000,000 Class A Loans rated A (low) (sf)

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.
-- The 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.

The rating on the Class A Loans reflects the 18.00% of initial hard credit enhancement provided by the Reserve Account (1.00%) and OC (17.00%). Additional credit support may be provided from excess spread available in the structure.

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

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

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

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.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.