DBRS Finalizes Provisional Ratings on Goal Structured Solutions Trust 2016-B

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following classes issued by Goal Structured Solutions Trust 2016-B (GSST 2016-B):

-- Series 2016-B, Class A-1 rated AAA (sf)
-- Series 2016-B, Class A-2 rated AA (sf)
-- Series 2016-B, Class B rated A (sf)

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 student loan borrowers.
-- Structural features of the transaction that require the Class A Notes to enter into full turbo principal amortization if certain performance triggers are breached or if credit enhancement deteriorates.
-- The ability of Navient Solutions, Inc. to perform collections on the collateral pool and other required activities.
-- 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 consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

More than 99% of the collateral (by outstanding principal balance as of the Cut-Off Date) backing the Notes consists of seasoned private student loans that were originated under various loan programs administered or sponsored by Navient Credit Finance Corporation (Navient), a subsidiary of Navient Corporation (formerly known as Sallie Mae, Inc.). The trust student loans were previously purchased from Navient by an affiliate of the Seller, Goal Structured Solutions, Inc. (GS2 or Goal), pursuant to a loan purchase agreement dated as of December 2015.

GSST 2016-B uses a traditional pass-through structure with credit enhancement consisting of overcollateralization, subordination provided by the Class A-2 Notes for the benefit of the Class A-1 Notes, subordination provided by the Class B Notes for the benefit of the Class A-1 and Class A-2 Notes, excess spread and a reserve account.

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

The applicable methodology is Rating U.S. Private Student Loan 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 the attached appendix for additional information regarding sensitivity of assumptions used in the rating process.

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