DBRS Morningstar Assigns Ratings to JGW X LLC’s Series 2019-D1 Notes

DBRS, Inc. (DBRS Morningstar) assigned the following rating to the notes (the Notes) issued by JGW X LLC:

-- $50,000,000 of Fixed Rate Asset Backed Notes, Series 2019-D1 at A (sf)

The ratings are based on DBRS Morningstar’s review of the following analytical considerations:

-- Transaction capital structure and form and sufficiency of available credit enhancement. The initial hard credit enhancement for the Notes is 7.38% and is in form of residual interest and cash reserve account.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the rating addresses timely payment of interest on a monthly basis and repayment of principal by the legal final maturity date.
-- The J.G. Wentworth Company (the Company) is an established originator and servicer of structured settlement and annuity contract receivables. Over the years, the Company has sponsored and supported multiple asset-backed security transactions secured by such collateral.
-- Vervent Inc. (f/k/a/ Portfolio Financial Servicing Company) is a backup servicer and, if needed, could assume primary servicing.
-- The pool is backed by a diverse and highly rated insurance carrier group, with 93.1% of the present value of collateral pool represented by insurance carriers that are of investment-grade quality. Furthermore, 86.4% of the present value of collateral pool is represented by insurance carriers with credit quality commensurate with an A (low) rating or better.
-- Collateral for the Notes exclusively comprises structured settlement receivables and annuity receivables; no lottery receivables or life-contingent collateral is included in the transaction.
-- The transaction is supported by an established structure and is consistent with DBRS Morningstar’s “Legal Criteria for U.S. Structured Finance” methodology. Legal opinions covering true sale and non-consolidation are also provided.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is Rating U.S. Structured Settlements Asset-Backed 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.

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

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA