Morningstar DBRS Confirms Credit Ratings on Four Transactions on One Oasis LLC Transaction and Three Libra Solutions LLC Transactions

DBRS, Inc. (Morningstar DBRS) confirmed the credit ratings on all classes of securities included in one Oasis LLC transaction and three Libra Solutions, LLC transactions.

The credit rating confirmations are based on the following analytical considerations:

-- The transaction assumptions consider Morningstar DBRS’ baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios For Rated Sovereigns: December 2023 Update,” published on December 19, 2023. These baseline macroeconomic scenarios replace Morningstar DBRS’ moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020.

-- Credit enhancement in the form of overcollateralization, a liquidity reserve, and excess funds. The credit enhancement levels have been rapidly building up since closing due to the turbo structure of the transactions.
-- Overall performance of the transactions has been in line with expectations.

-- The Company’s experience as an originator in the litigation and medical receivable business.

-- Insurance companies often repay advances. While there is exposure to the insurance industry in this transaction, DBRS Morningstar does not expect the economic stress caused by the coronavirus to adversely affect the insurance carrier's ability to pay in the short to medium term.
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS

There were no environmental, social, or governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (23 January 2024) https://dbrs.morningstar.com/research/427030.

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

The principal methodology applicable to the credit ratings is DBRS Morningstar Master U.S. ABS Surveillance (22 October 2023) https://dbrs.morningstar.com/research/422279

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

The credit rating was not initiated at the request of the rated entity.

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

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

This is a solicited credit rating.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the credit rating process.

DBRS, Inc.
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The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

-- Operational Risk Assessment for U.S. ABS Servicers (July 20, 2023), https://dbrs.morningstar.com/research/417415
-- Operational Risk Assessment for U.S. ABS Originators (July 20, 2023), https://dbrs.morningstar.com/research/417416
-- Interest Rate Stresses for U.S. Structured Finance Transactions (June 9, 2023),
https://dbrs.morningstar.com/research/415687
-- Legal Criteria for U.S. Structured Finance (December 7, 2023),
https://dbrs.morningstar.com/research/425081
-- Rating U.S. Structured Finance Transactions (October 30, 2023),
https://dbrs.morningstar.com/research/422592

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