DBRS Withdraws and Assigns New Provisional Ratings to Navient Student Loan Trust 2018-1

DBRS, Inc. (DBRS) discontinued-withdrew existing provisional ratings on the following classes of notes that were to be issued by Navient Student Loan Trust 2018-1 (Navient 2018-1):

-- $191,000,000 Class A-1 Notes rated AAA (sf)
-- $199,500,000 Class A-2 Notes rated AAA (sf)
-- $359,300,000 Class A-3 Notes rated AAA (sf)
-- $11,000,000 Class B Notes rated AA (sf)

DBRS simultaneously assigned new provisional ratings to the following classes of notes to be issued by Navient 2018-1:

-- $233,000,000 Class A-1 Notes rated AAA (sf)
-- $283,300,000 Class A-2 Notes rated AAA (sf)
-- $471,000,000 Class A-3 Notes rated AAA (sf)
-- $14,900,000 Class B Notes rated AA (sf)

The assignment of new provisional ratings is consistent with the cash flow modeling assumptions for the respective rating categories. The new provisional ratings correspond to a larger structure that offers additional credit enhancement to the rated notes and is based on a collateral pool that was previously analyzed by DBRS.

The provisional ratings are based on a review by DBRS 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 will 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”.

The collateral securing Navient 2018-1 will consist of student loans originated pursuant to the Federal Family Education Loan Program, which are ultimately guaranteed by the U.S. Department of Education for at least 97% of principal plus accrued interest. Navient Solutions, LLC will service 100% of the trust student loans.

Each class of notes will bear interest based on one-month LIBOR plus a margin that will be determined at pricing and will be paid on a monthly basis beginning on the distribution date in March 2018. 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 will be subordinate to interest on the Class A Notes. Principal of the Class B Notes will be 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 for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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

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