DBRS Finalizes Provisional Ratings on CommonBond Student Loan Trust 2018-C-GS

DBRS, Inc. (DBRS) finalized its provisional ratings on the following classes of notes issued by CommonBond Student Loan Trust 2018-C-GS (CBSLT 2018-C-GS):

-- $275,162,000 Class A-1 Notes at AAA (sf)
-- $27,927,000 Class A-2 Notes at AAA (sf)
-- $42,583,000 Class B Notes at AA (sf)
-- $20,778,000 Class C Notes at A (sf)

The finalized ratings are based on a review by DBRS of the following 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 notes to enter into full turbo principal amortization if certain performance triggers are breached or if credit enhancement deteriorates.
-- The experience, underwriting and origination capabilities of CommonBond.
-- The ability of Nelnet Servicing, LLC 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 Class A-1 Notes are primarily secured by a group of fixed-rate loans. The variable-rate Class A-2 Notes are primarily secured by a group of variable-rate loans. The Class B Notes and Class C Notes are secured by both the fixed-rate and variable-rate loan groups.

CBSLT 2018-C-GS uses a traditional pass-through structure, with credit enhancement consisting of overcollateralization; subordination provided by the Class B Notes and Class C Notes for the benefit of the Class A-1 Notes and Class A-2 Notes (together, the Class A Notes); subordination provided by the Class C Notes for the benefit of the Class B Notes; separate reserve accounts for each of the Class A Notes; excess spread; separate liquidity accounts for the Class B Notes and Class C Notes; and limited cross-collateralization.

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 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.