DBRS Assigns Provisional Ratings to Massachusetts Educational Financing Authority Education Loan Asset-Backed Notes Series 2018-A

DBRS, Inc. (DBRS) assigned provisional ratings to the following classes of notes (collectively, the Notes) issued by Massachusetts Educational Financing Authority Series 2018-A (MEFA Series 2018-A):

-- $157,700,000 Class A Notes at AAA (sf)
-- $6,397,000 Class B Notes at A (sf)

The provisional ratings are based on a review by DBRS of the following considerations:
-- The transaction’s form and sufficiency of available credit enhancement. Overcollateralization, subordination, reserve fund amounts and excess spread create credit enhancement levels and liquidity 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 MEFA Series 2018-A transaction documents.
-- The sequential pay structure.
-- The quality and credit characteristics of the student loan borrowers.
-- The capabilities of MEFA and loan originating agent, Entech Consulting, LLC, with regards to originations and underwriting.
-- The ability of the Servicer, Pennsylvania Higher Education Assistance Agency (PHEAA), to perform collections on the collateral pool and other required activities.
-- The legal structure and expected legal opinions that are consistent 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 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.

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.