DBRS Assigns Provisional Ratings to College Ave Student Loans 2019-A, LLC

DBRS, Inc. (DBRS) assigned provisional ratings to the following classes of notes (collectively, the Notes) to be issued by College Ave Student Loans 2019-A, LLC (College Ave 2019-A):

-- $84,730,000 Class A-1 Notes at AAA (sf)
-- $136,580,000 Class A-2 Notes at AAA (sf)
-- $36,460,000 Class B Notes at AA (sf)
-- $35,710,000 Class C Notes at A (sf)
-- $6,600,000 Class D Notes at BBB (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.
-- Transaction cash flows are sufficient to repay investors under all AAA (sf), AA (sf), A (sf) and BBB (sf) stress scenarios in accordance with the terms of the College Ave 2019-A transaction documents.
-- The quality and credit characteristics of the student loan borrowers.
-- Structural features of the transaction that require the Notes to enter into full turbo principal amortization if certain minimum parity levels are not maintained.
-- The experience, underwriting and origination capabilities of College Ave Student Loans, LLC.
-- The ability of the Servicer, University Accounting Service, LLC, to perform collections on the collateral pool and other required activities.
-- The benefits offered by the existence of a Backup Servicer, the Pennsylvania Higher Education Assistance Agency.
-- The legal structure and expected presence of legal opinions that will address the true sale of the student loans, the non-consolidation of the trust and 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.”

College Ave 2019-A will use a traditional pass-through structure with credit enhancement consisting of overcollateralization (OC), a reserve account, a capitalized interest account, subordination provided by the Class B Notes, Class C Notes and Class D Notes for the benefit of the Class A-1 Notes and Class A-2 Notes, subordination provided by the Class C Notes and Class D Notes for the benefit of the Class B Notes, subordination provided by the Class D Notes for the benefit of the Class C Notes and excess spread. Principal payments to the Notes, once required OC targets are met, will be paid on a pro-rata basis. The Notes will be primarily secured by a single pool of loans that includes both variable-rate loans and fixed-rate loans.

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 & 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 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.

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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