DBRS Assigns Provisional Ratings to Towd Point Asset Trust 2018-SL1

DBRS, Inc. (DBRS) assigned provisional ratings to the following classes of notes to be issued by Towd Point Asset Trust 2018-SL1 (TPAT 2018-SL1):

-- $282,540,000 Class A Notes at AAA (sf)
-- $55,041,000 Class B Notes at A (sf)
-- $337,581,000 Class AB Notes at A (sf)

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

(1) The transaction’s form and sufficiency of available credit enhancement.
-- Note subordination, a reserve account and excess spread create credit enhancement levels that are commensurate with the proposed ratings.
-- Transaction cash flows are sufficient to repay investors under all AAA (sf) and A (sf) stress scenarios in accordance with the terms of the TPAT 2018-SL1 transaction documents.
(2) The quality and credit characteristics of the student loan borrowers.
(3) The sequential pay cash flow structure.
(4) The ability of the transaction to pay all interest shortfalls to the Class B Notes in all cash flow stress scenarios.
(5) The ability of Pennsylvania Higher Education Assistance Agency and Turnstile Capital Management, LLC to service and perform collections on the collateral pool and other required activities.
(6) The legal structure and expected legal opinions that will 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.”

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

The principal methodology is Rating U.S. Private Student Loan Securitizations, which can be found on dbrs.com 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 the sensitivity of assumptions used in the rating process.

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