DBRS Finalizes Provisional Ratings on CommonBond Student Loan Trust 2017-A-GS

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following classes issued by CommonBond Student Loan Trust 2017-A-GS (CBSLT 2017-A-GS):

-- $135,128,000 Class A-1 rated AA (sf)
-- $64,947,000 Class A-2 rated AA (sf)
-- $22,629,000 Class B rated BBB (sf)
-- $8,980,000 Class C rated BB (sf)

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

-- The transaction’s form and sufficiency of available credit enhancement.
-- The quality and credit characteristics of the student loan borrowers.
-- Structural features of the transaction that require the 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 CommonBond Lending, LLC.
-- The ability of the Servicer to perform collections on the collateral pool and other required activities.
-- The legal structure and legal opinions that 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 “Legal Criteria for U.S. Structured Finance” methodology.

The fixed-rate Class A-1 Notes are secured by a group of fixed-rate loans. The variable-rate Class A-2 Notes are secured by a group of variable-rate loans. The Class B Notes and Class C Notes are secured by both the fixed-rate and variable-rate loan groups.

CBSLT 2017-A-GS uses a traditional pass-through structure, with credit enhancement consisting of overcollateralization, a separate reserve account for each class of Class A Notes, separate liquidity accounts for the Class B Notes and Class C Notes, subordination provided by the Class B Notes and Class C Notes for the benefit of the Class A Notes, subordination provided by the Class C Notes for the benefit of the Class B Notes, excess spread and limited cross-collateralization.

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.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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

The full report providing additional analytical detail is available by clicking on the link or by contacting us at info@dbrs.com.