DBRS Morningstar Assigns Provisional Ratings to SoFi Professional Loan Program 2020-A Trust

DBRS, Inc. (DBRS Morningstar) assigned provisional ratings to the following classes of notes (the Notes) to be issued by SoFi Professional Loan Program 2020-A Trust (SoFi 2020-A):

-- $261,200,000 Class A-1FX Notes at AAA (sf)
-- $193,600,000 Class A-2FX Notes at AAA (sf)
-- $27,500,000 Class B-FX Notes at AA (sf)

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

-- The transaction’s form and sufficiency of available credit enhancement.
-- The sequential pay structure.
-- The quality and credit characteristics of the student loan borrowers.
-- Structural features of the transaction that require the Class A-1FX Notes and Class A-2FX Notes (together, the Class A Notes) to enter into full turbo principal amortization if certain performance triggers are breached or if credit enhancement deteriorates.
-- The experience, underwriting, and origination capabilities of SoFi Lending Corp (SoFi).
-- The ability of The Higher Education Loan Authority of the State of Missouri to perform collections on the collateral pool and other required activities.
-- 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, that the trust has a valid first-priority security interest in the assets, and consistency with the DBRS Morningstar “Legal Criteria for U.S. Structured Finance.”

The Notes will be backed by a trust certificate representing 100% of the beneficial ownership interest in a grantor trust, the assets of which consist of loans originated through SoFi’s private student loan refinancing program (Refinancing Loans). The fixed-rate Class A Notes and Class B-FX Notes (the Class B Notes) will be secured by a group of fixed-rate Refinancing Loans.

Credit enhancement for SoFi 2020-A will consist of overcollateralization, subordination provided by the Class B Notes for the benefit of the Class A Notes, a reserve account for the Class A Notes, excess spread, and a liquidity account for the Class B Notes.

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 Morningstar 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 [email protected].

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

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