Press Release

DBRS Assigns Provisional Ratings to the Series 2018-1 Notes Issued by OnDeck Asset Securitization Trust II LLC

Other
April 05, 2018

DBRS, Inc. (DBRS) assigned provisional ratings to the following classes of notes to be issued by OnDeck Asset Securitization Trust II LLC (the Issuer):

-- $177,500,000 Series 2018-1 Asset-Backed Notes, Class A rated AA (sf)
-- $15,500,000 Series 2018-1 Asset-Backed Notes, Class B rated A (sf)
-- $20,000,000 Series 2018-1 Asset-Backed Notes, Class C rated BBB (sf)
-- $12,000,000 Series 2018-1 Asset-Backed Notes, Class D rated BB (high) (sf)

The provisional ratings are based on a review by DBRS of the following analytical considerations:

-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- Credit quality of the collateral pool and the historical performance of On Deck Capital, Inc.’s small business loan portfolio.
-- The transaction incorporates both collateral performance triggers and servicer financial covenants that will be expected to protect the noteholders in a stressed environment.
-- The structure and presence of legal opinions, which address the true sale of the assets to the Issuer, the non-consolidation of the Issuer with On Deck Capital, Inc. and the trustee’s valid first-priority security interest in the collateral assets.

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

The principal methodology is Rating CLOs and CDOs of Large Corporate Credit (January 2018), which can be found on dbrs.com under Methodologies.

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

Please see the related appendix for additional information regarding the 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.

Ratings

  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.