DBRS, Inc. (DBRS Morningstar) assigned provisional ratings to the following classes of Series 2019-1 Fixed Rate Asset Backed Notes (Series 2019-1) to be issued by OnDeck Asset Securitization Trust II LLC (the Issuer):
-- $86,300,000 Class A rated AAA (sf)
-- $8,200,000 Class B rated AA (sf)
-- $9,300,000 Class C rated A (sf)
-- $13,300,000 Class D rated BBB (sf)
-- $7,900,000 Class E rated BB (high) (sf)
The provisional ratings are based on a review by DBRS Morningstar of the following analytical considerations:
-- Transaction capital structure, proposed ratings and form and sufficiency of available credit enhancement.
-- The transaction parties’ capabilities with regard to originations, underwriting and servicing.
-- Credit quality of the collateral, which comprises mostly term loans (10% concentration limit for drawn amounts under the lines of credit will be allowed for Series 2019-1), and the historical performance of On Deck Capital, Inc.’s (OnDeck) small business loan portfolio.
-- The transaction incorporates both collateral performance triggers and servicer financial covenants that will be expected to protect the noteholders in a stressed environment.
-- The structure and presence of legal opinions, which will address the true sale of the assets to the Issuer, the non-consolidation of the Issuer with OnDeck’s estate, the trustee’s valid first-priority security interest in the collateral assets and the consistency with DBRS Morningstar’s “Legal Criteria for U.S. Structured Finance” methodology.
All figures are in U.S. dollars unless otherwise noted.
The principal methodologies are Rating CLOs and CDOs of Large Corporate Credit, Rating U.S. Structured Finance Transactions, Rating U.S. Credit Card Asset-Backed Securities and Rating CLOs Backed by Loans to European SMEs, 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 email@example.com.
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