Fitch Ratings assigns the following ratings to DRB Prime Student Loan Trust 2015-B notes:
— Class A-1 notes ‘BBBsf’; Outlook Stable;
— Class A-2 notes ‘BBB+sf’; Outlook Stable;
— Class A-3 notes ‘BBB+sf’; Outlook Stable.
KEY RATING DRIVERS
Strong Collateral Quality: The 2015-B trust pool consists of credit-tested private student loans originated under DRB’s private student loan programs and underwritten to the respective guidelines. As of the Aug. 31, 2015 statistical cutoff date, the weighted average Fair Isaac Corp. (FICO) score at origination was 765; 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: Transaction cash flows were satisfactory under all stressed scenarios at Fitch’s ‘BBBsf’ and ‘BBB+sf’ rating categories for the class A-1, and A-2 & A-3, respectively. Credit enhancement (CE) for each class A note is provided by overcollateralization (OC) and excess spread. At closing, total parity for the class A-1, A-2 and A-3 notes is expected to be at 111.37%; 111.33% and 111.33%, respectively. The initial CE for the class A-1, A-2, and A-3 notes is expected to be 10.21%, 10.17%, and 10.17%, respectively. Funds cannot be released from the trust unless the OC builds up to the greater of 11.94% of the adjusted pool balance for each note or $2,361,000, $4,629,000, and $599,000 for the class A-1, A-2, and A-3 note, respectively (i.e. 2.0% of the initial adjusted pool balance for each note).
Adequate Liquidity Support: Liquidity support is provided by a reserve account, which will be fully funded at closing at 0.25% of the initial note balance. The specified reserve requirement will be the greater of 0.25% of the outstanding note balance and 0.15% of the initial note balance.
Satisfactory Servicing Capabilities: Darien Rowayton Bank, will service all the loans in the 2015-B trust, with First Associates, LLC as a backup servicer. Fitch has reviewed the servicing operations of Darien Rowayton Bank and considers it to be an effective private student loan servicer.