DBRS Upgrades, Confirms Earnest Student Loan Program 2016-A LLC

DBRS, Inc. (DBRS) upgraded the rating on the Class B Notes issued by Earnest Student Loan Program 2016-A LLC to AA (sf) from A (high) (sf) and confirmed the AAA (sf) ratings on the Class A-1 and Class A-2 Notes.

RATING RATIONALE/DESCRIPTION
The rating rationale includes the following key analytical considerations:
-- Transaction capital structure, current ratings and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to origination, underwriting and servicing.
-- The credit quality of the collateral pool and historical performance.

The transaction is a securitization of student loan receivables. There are two senior classes and a subordinated tranche. As of the date of the review, the factor of the collateral pool was 26.88%. The factors of the Class A-1, Class A-2 and Class B Notes were 25.49%, 25.49% and 27.10%, respectively. The 30+ day delinquency rate was 0.18%. The forbearance and deferment rates were 0.94% and 1.08%, respectively. There have been no cumulative net losses. Credit enhancement for the Class A-1 and Class A-2 Notes was 16.08%. Credit enhancement for the Class B Notes was 10.5%.

Notes:
The principal methodology is the DBRS Master U.S. ABS Surveillance Methodology, which can be found on dbrs.com under Methodologies & Criteria.

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.

This rating is endorsed by DBRS Ratings Limited for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:

The transaction was last reviewed April 18, 2018. At that time, the Class A-1 and Class A-2 Notes were upgraded to AAA (sf) from A (high) (sf), and the Class B Notes were upgraded to A (high) (sf) from BBB (sf).

For further information on DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Lead Analyst: Jayce Fox, Senior Vice President, U.S. ABS Surveillance – Global Structured Finance
Rating Committee Chair: Tim O’Neil, Managing Director, Head of Canadian Structured Finance – Global Structured Finance
Initial Rating Date: August 14, 2013

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

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