Morningstar DBRS Confirms Credit Ratings on Bayview Opportunity Master Fund VII 2024-EDU1, LLC

DBRS, Inc. (Morningstar DBRS) confirmed its credit rating on the securities issued by Bayview Opportunity Master Fund VII 2024-EDU1, LLC

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

-- The transaction's capital structure and the form and sufficiency of available credit enhancement and liquidity.

-- Credit enhancement is in the form of excess spread with senior notes benefiting from subordination of junior notes.

-- The letters of credit provide adequate liquidity support for the Notes in the event that the transaction unwinds.

-- Credit enhancement levels are sufficient to support the Morningstar DBRS expected default and loss severity assumptions under various stress scenarios.

-- Minimum counterparty rating and counterparty replacement requirements, in addition to the collateral accounts that significantly mitigate counterparty risk.

-- Fully funded collateral accounts that initially represent the initial aggregate Note balance and secure payments to the Notes.

-- Structural features of the transaction that will require the Notes to enter into full turbo principal amortization upon the occurrence of significant student loan performance deterioration.

-- The transaction parties' capabilities with respect to origination, underwriting, and servicing.

-- The transaction assumptions consider Morningstar DBRS's baseline macroeconomic scenarios for rated sovereign economies, available in its commentary Baseline Macroeconomic Scenarios for Rated Sovereigns - March 2025 Update, published on March 26, 2025. These baseline macroeconomic scenarios replace Morningstar DBRS's moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.

ENVIRONMENTAL, SOCIAL, AND 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 Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024) https://dbrs.morningstar.com/research/437781.

Morningstar DBRS notes that this press release was amended on May 15, 2025, to remove trends that were incorrected added.

Notes:
The principal methodology applicable to the credit ratings is Morningstar DBRS Master U.S. ABS Surveillance (April 10, 2025) https://dbrs.morningstar.com/research/451793.

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

The credit rating was 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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Tel. +1 212 806-3277

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 Originators and Servicers (March 26, 2025)
https://dbrs.morningstar.com/research/450709

Legal Criteria for U.S. Structured Finance (December 3, 2024)
https://dbrs.morningstar.com/research/444064

Interest Rate Stresses for U.S. Structured Finance Transactions (March 27, 2025)
https://dbrs.morningstar.com/research/450750

Rating U.S. Structured Finance Transactions (March 10, 2025)
https://dbrs.morningstar.com/research/449616

Rating U.S. Private Student Loan Securitizations (November 11, 2024)
https://dbrs.morningstar.com/research/442835

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