DBRS Morningstar Confirms Ratings on OnDeck Asset Securitization Trust III LLC

DBRS, Inc. (DBRS Morningstar) confirmed its ratings on the following classes of notes issued by OnDeck Asset Securitization Trust III LLC:

-- Series 2021-1 Fixed Rate Asset Backed Notes, Class A at AAA (sf)
-- Series 2021-1 Fixed Rate Asset Backed Notes, Class B at A (sf)
-- Series 2021-1 Fixed Rate Asset Backed Notes, Class C at BBB (sf)
-- Series 2021-1 Fixed Rate Asset Backed Notes, Class D at BB (sf)

The rating actions are based on the following analytical considerations:

-- The transaction assumptions consider DBRS Morningstar’s baseline macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios for Rated Sovereigns: December 2022 Update,” published on December 21, 2022. These baseline macroeconomic scenarios replace DBRS Morningstar’s moderate and adverse COVID-19 pandemic scenarios, which were first published in April 2020.

-- Credit enhancement is in the form of overcollateralization, a reserve account, subordination, and excess spread. Credit enhancement levels are sufficient to cover DBRS Morningstar-expected losses at their current respective rating levels.

-- Credit quality of the collateral pool and historical performance, and the ability of the transaction to perform within DBRS Morningstar’s base-case assumptions.

-- The transaction parties’ capabilities with regard to originating, underwriting, and servicing.

ESG CONSIDERATIONS
There were no Environmental/Social/Governance factors that had a significant or relevant effect on the credit analysis.

A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at (May 17, 2022) https://www.dbrsmorningstar.com/research/396929/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Notes:
The principal methodology applicable to the ratings is DBRS Morningstar Master U.S. ABS Surveillance (February 06, 2023; https://www.dbrsmorningstar.com/research/409444).

Other methodologies referenced in this transaction are listed at the end of this press release.

The DBRS Morningstar Sovereign group releases baseline macroeconomic scenarios for rated sovereigns. DBRS Morningstar analysis considered impacts consistent with the baseline scenarios as set forth in the following report: https://www.dbrsmorningstar.com/research/384482.

The rating was initiated at the request of the rated entity.

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

DBRS Morningstar had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

This is a solicited credit rating.

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

DBRS, Inc.
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New York, NY 10005 USA
Tel. +1 212 806-3277

The rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies.

Operational Risk Assessment for U.S. ABS Servicers (April 05, 2023)
https://www.dbrsmorningstar.com/research/412303/operational-risk-assessment-for-us-abs-servicers

Operational Risk Assessment for U.S. ABS Originators (April 05, 2023)
https://www.dbrsmorningstar.com/research/412302/operational-risk-assessment-for-us-abs-originators

Legal Criteria for U.S. Structured Finance (December 07, 2022)
https://www.dbrsmorningstar.com/research/407008/legal-criteria-for-us-structured-finance

Rating U.S. Structured Finance Transactions (February 06, 2023)
https://www.dbrsmorningstar.com/research/409449/rating-us-structured-finance-transactions

Rating CLOs and CDOs of Large Corporate Credit (February 07, 2023)
https://www.dbrsmorningstar.com/research/409498/rating-clos-and-cdos-of-large-corporate-credit

Rating U.S. Credit Card Asset-Backed Securities (August 08, 2022)
https://www.dbrsmorningstar.com/research/401145/rating-us-credit-card-asset-backed-securities

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