DBRS Morningstar Finalizes Provisional Ratings on ELFI Graduate Loan Program 2019-A LLC

DBRS, Inc. (DBRS Morningstar) finalized its provisional ratings on the following classes of notes (collectively, the Notes) issued by ELFI Graduate Loan Program 2019-A LLC (ELFI 2019-A):

-- $294,288,000 Class A Notes at AAA (sf)
-- $24,375,000 Class B Notes at AA (sf)
-- $6,337,000 Class C Notes at A (sf)

The $325 million ELFI 2019-A transaction represents the second securitization of refinanced student loans originated by Education Loan Finance (ELFI), a division of SouthEast Bank (the Bank).

The finalized ratings are based on a review by DBRS Morningstar 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 the Bank.
-- 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 Morningstar “Legal Criteria for U.S. Structured Finance” methodology.

ELFI 2019-A uses a traditional pass-through structure, with credit enhancement consisting of overcollateralization, excess spread, subordination provided by the Class B Notes and Class C Notes for the benefit of the Class A Notes, subordination provided by the Class C Notes for the benefit of the Class B Notes, a reserve account for the Class A Notes and separate liquidity accounts for the Class B Notes and Class C Notes.

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 & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS Morningstar 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.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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