Press Release

DBRS Morningstar Confirms Rating on Museum Finance LLC

Student Loans
July 14, 2023

DBRS, Inc. (DBRS Morningstar) confirmed its rating of A (sf) on the Class A Loans issued by Museum Finance LLC.

The rating confirmation is based on the following analytical considerations:

-- The transaction structure and sufficiency of the warehouse facility’s advance rate and other forms of credit enhancement, which are commensurate with a rating of A (sf).
-- Concentration limits and eligibility criteria, which will help maintain the characteristics of the revolving loan pool at a level commensurate with the rating level.
-- The warehouse facility has certain performance-related triggers, which, if violated, will result in an early amortization event.
-- The quality and credit characteristics of the student loan borrowers.
-- Structural features of the transaction that require the Class A Loans to enter into full turbo principal amortization if certain minimum parity levels are not maintained.
-- The experience, underwriting, and origination capabilities of CASL.
-- 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 (rated AAA (sf) by DBRS Morningstar).
-- The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios for Rated Sovereigns: April 2023 Update,” published on April 28, 2023. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse Coronavirus Disease (COVID-19) pandemic scenarios, which were first published in April 2020.
-- The legal structure and presence of legal opinions that address the true sale of the student loans, the nonconsolidation of the trust, that the trust has a valid first-priority security interest in the assets, and consistency with DBRS Morningstar's “Legal Criteria for U.S. Structured Finance.”

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at https://www.dbrsmorningstar.com/research/396929 (May 17, 2022).

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

The principal methodology applicable to the ratings is Rating U.S. Private Student Loan Securitizations (October 28, 2022; https://www.dbrsmorningstar.com/research/404500).

Other methodologies referenced in this transaction are listed at the end of this press release.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

The rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the rating process for this rating action.

DBRS Morningstar had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This is a solicited credit rating.

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

DBRS, Inc.
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New York, NY 10005 USA
Tel. +1 212 806-3277

The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

Rating U.S. Structured Finance Transactions (February 6, 2023; https://www.dbrsmorningstar.com/research/409449).

Operational Risk Assessment for U.S. ABS Servicers (April 5, 2023; https://www.dbrsmorningstar.com/research/412303).

Operational Risk Assessment for U.S. ABS Originators (April 5, 2023; https://www.dbrsmorningstar.com/research/412302).

Legal Criteria for U.S. Structured Finance (December 7, 2022; https://www.dbrsmorningstar.com/research/407008).

Interest Rate Stresses for U.S. Structured Finance Transactions (August 30, 2022; https://www.dbrsmorningstar.com/research/402153).

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

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