DBRS Finalizes Provisional Ratings on Navient Student Loan Trust 2017-4

DBRS, Inc. (DBRS) has today finalized its provisional ratings on the following classes issued by Navient Student Loan Trust 2017-4 (Navient 2017-4):

-- $308,000,000 Class A-1 rated AAA (sf)
-- $220,000,000 Class A-2 rated AAA (sf)
-- $472,000,000 Class A-3 rated AAA (sf)
-- $15,000,000 Class B rated AA (sf)

The ratings are based on DBRS’s review of the following analytical considerations:

-- The transaction’s form and sufficiency of available credit enhancement.
-- 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 the consistency with the DBRS “Legal Criteria for U.S. Structured Finance” methodology.

The collateral securing Navient 2017-4 consists of student loans originated pursuant to the Federal Family Education Loan Program, which are guaranteed to at least 97% of principal plus accrued interest. Navient Solutions, Inc. will service 100% of the loans.

The Notes will bear interest based on one-month LIBOR plus a margin that was determined at pricing and will be paid on a monthly basis beginning on the distribution date in September 2017. Principal will be paid sequentially to the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class B Notes, in that order, until each such class of Notes is paid in full. Interest on the Class B Notes is subordinate to interest on the Class A Notes. Principal of the Class B Notes is subordinate to both principal and interest on the Class A Notes and interest on the Class B Notes.

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

The principal methodology is Rating U.S. Federal Family Education Loan Program 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 under Related Research at the right of the screen or by contacting us at info@dbrs.com.