DBRS Morningstar Finalizes Provisional Rating on Oasis 2020-1 LLC

DBRS, Inc. (DBRS Morningstar) finalized its provisional rating on the following class of notes issued by Oasis 2020-1 LLC (the Issuer):

-- $122,000,000 Fixed Rate Asset Backed Notes (the Notes) at A (sf)

The rating is based on DBRS Morningstar’s review of the following analytical considerations:

-- Transaction capital structure, current rating, and sufficiency of available credit enhancement.
-- Overcollateralization and a fully funded reserve account provide credit enhancement levels that are commensurate with the rating of the Notes. Credit enhancement levels are sufficient to support DBRS Morningstar-projected expected cumulative loss assumptions under various stress scenarios.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms under which they have invested. For this transaction, the rating addresses the timely payment of interest and ultimate payment of principal of the Notes by the Legal Final Payment Date.
-- The full-turbo feature included in the transaction provides further protection for the Notes.
-- Oasis Intermediate Holdco, LLC (Oasis) is an experienced originator in the litigation and medical receivable business.
-- DBRS Morningstar’s operational review of Oasis as the originator and servicer. For the purpose of assigning the rating to the transaction, DBRS Morningstar performed an on-site operational risk review of Oasis and deemed it to be an acceptable originator and servicer of litigation and medical receivables for DBRS Morningstar-rated transactions, with an acceptable backup servicer.
-- As of September 2019, Oasis had originated, in aggregate, approximately $860 million of litigation advances and loans and $255 million of medical receivable purchase.
-- The legal structure and presence of legal opinions that address the true sale of the assets to the Issuer, the nonconsolidation of the special-purpose vehicle with Oasis, that the trust has a valid first-priority security interest in the assets, and consistency with DBRS Morningstar’s “Legal Criteria for U.S. Structured Finance” methodology.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is U.S. ABS General Ratings Methodology, 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 protected].

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

DBRS, Inc.
140 Broadway, 43rd Floor
New York, NY 10005 USA