DBRS Finalizes Provisional Rating on SoFi Alternative Trust 2019-C

DBRS, Inc. (DBRS) finalized its provisional rating on the Post-Graduate Loan Asset-Backed Certificates (Certificates) issued by SoFi Alternative Trust 2019-C (SAT 2019-C) as follows:

-- $200,000,041 Certificates at A (sf)

The finalized rating is based on a review by DBRS of the following analytical considerations:

-- The transaction’s form and sufficiency of available credit enhancement.
-- The quality and credit characteristics of the student loan borrowers.
-- The experience, underwriting and origination capabilities of SoFi Lending Corp (SoFi).
-- The ability of the Servicer to perform collections on the collateral pool and other required activities.
-- The legal structure and legal opinions that address the true sale of the student loans, the non-consolidation of the trust, that the underlying trust has a valid security interest in the student loans and consistency with the DBRS “Legal Criteria for U.S. Structured Finance.”

The Certificates are secured by a portfolio of fixed-rate loans originated through SoFi’s private student loan refinancing program. The Certificates do not bear rated interest and are entitled to receive all principal (including recoveries) and interest payments on the trust student loans, after expenses and amounts deposited in a reserve account.

DBRS’s rating analysis considers the transaction’s events of default, which incorporate the acceleration of the Certificates, but does not include other remedies.

SoFi is a San Francisco, California-based financial services company focused on early career professionals. Since its inception in 2011, SoFi’s primary line of business has been originating loans that refinance the existing student loan debt of creditworthy professionals, principally from graduate schools and top-tier undergraduate schools. SoFi’s lending approach emphasizes underwriting mainly based on free cash flow, ability to repay, credit history and work experience. As of March 31, 2019, SoFi had originated approximately $23.5 billion in student loan refinancings to approximately 285,000 borrowers. SoFi has expanded across different asset categories within the consumer lending space, including personal loans and mortgages.

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 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.

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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