Fitch To Rate DRB Prime Student Loan Trust 2015-B

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings expects to rate DRB Prime Student Loan Trust 2015-B as follows:

--$112,343,000 class A-1 notes 'BBBsf(exp)'; Outlook Stable;

--$217,416,000 class A-2 notes 'BBB+sf(exp)'; Outlook Stable;

--$29,226,000 class A-3 notes 'BBB+sf(exp)'; Outlook Stable.

KEY RATING DRIVERS

Strong Collateral Quality: The 2015-B trust pool consists of 100% private consolidation loans provided to employed graduates of professional programs. As of the May 29, 2015 statistical cutoff date, the weighted average Fair Isaac Corp. (FICO) score at origination was 764; the average income was approximately $178,730, 100% of the loans are in active repayment; and none of the loans were more than 30 days past due or involved in a bankruptcy proceeding.

Sufficient Credit Enhancement (CE): Transaction cash flows were satisfactory under all stressed scenarios at Fitch's 'BBBsf' for class A-1 and 'BBBsf+' for class A-2 and A-3 rating categories. CE for each class A note is provided by overcollateralization (OC); excess spread and limited cross-collateralization. The initial CE for class A-1, A-2, and A-3 is expected to be 10.21%, 10.17%, and 10.17%, respectively. Funds cannot be released from the trust unless the OC (including the reserve account) builds up to the greater of 11.94% of the adjusted pool balance for each note or $2,496,773, $4,829,987, and $649,266 for class A-1, A-2, and A-3 not, respectively.

Adequate Liquidity Support: Liquidity support is provided by a reserve account for each class A note, which will be fully funded at closing and maintained at the greater of 0.25% of each respective class A outstanding note balance and 0.15% of each class A initial note balance.

Satisfactory Servicing Capabilities: DRB will service all of the loans in the 2015-B trust, and First Associates, LLC as a backup servicer. Fitch has reviewed the servicing operations of DRB and considers it to be an effective private student loan servicer.

RATING SENSITIVITIES

As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels and/or prepayment speeds than the base case. This will result in a decline in available CE and the remaining loss coverage levels available to the notes. Therefore, note ratings may be susceptible to potential negative rating actions, depending on the extent of the decline in the coverage.

Rating sensitivity results should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. Rating sensitivity should not be used as an indicator of future rating performance.

Key Rating Drivers and Rating Sensitivities are further described in the presale report titled 'DRB Prime Student Loan Trust 2015-B, dated Aug. 12, 2015, available on www.fitchratings.com, or by clicking on the link.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this expected rating.

Additional information is available at www.fitchratings.com.

DRB Prime Student Loan Trust 2015-B (US Student Loans)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869709

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds (pub. 19 Dec 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=838868

EMEA Consumer ABS Rating Criteria (pub. 24 Jun 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750766

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. Private Student Loan ABS Criteria (pub. 31 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868836

Related Research

DRB Prime Student Loan Trust 2015-B -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869723

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=989373

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=989373

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150812006059/en/

Fitch Ratings
Primary Analyst
Melvin Zhou
Director
+1-212-908-0503
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Charlene M. Davis
Director
+1-212-908-0213
or
Committee Chairperson
Tracy Wan
Senior Director
+1-212-908-9171
or
Media Relations
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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