DBRS Finalizes Provisional Ratings on LRB 2018-B

DBRS, Inc. (DBRS) finalized its provisional ratings on the following classes of notes (collectively, the Notes) issued by Laurel Road Prime Student Loan Trust 2018-B (LRB 2018-B):

-- $77,891,000 Class A-1FX Notes at AAA (sf)
-- $170,005,000 Class A-2FX Notes at AAA (sf)
-- $30,250,000 Class B-FX Notes at AA (sf)

The 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 Class A-1FX Notes and Class A-2FX Notes (together, the Class A Notes) to enter into full turbo principal amortization if certain performance triggers are breached or if credit enhancement deteriorates.
-- Laurel Road’s (LRB) capabilities with regard to originations and underwriting.
-- 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.”

The fixed rate Notes are secured by fixed rate Refinancing Loans originated by LRB. The DBRS ratings for the Notes address the timely payment of interest and full payment of principal in accordance with the terms and conditions of the LRB 2018-B transaction documents.

LRB 2018-B uses a traditional structure, with credit enhancement consisting of overcollateralization, subordination provided by the Class B-FX Notes for the benefit of the Class A Notes, a reserve account for the Class A Notes, a liquidity account for the Class B-FX Notes and excess spread.

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 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.