DBRS Morningstar U.S. Private Student Loan ABS Sector Outlook — Negative Due to CoronavirusStudent Loans
As a result of the ongoing impact of the Coronavirus Disease (COVID-19) on the U.S. economy and on borrowers’ abilities and willingness to repay outstanding debts, DBRS Morningstar’s outlook on the private student loan (PSL) asset-backed securities (ABS) sector is negative. With the closure of many non-essential businesses across the country, jobless claims have exceeded 46 million since mid-March, severely disrupting overall economic activity and growth. We expect obligor credit deterioration in PSL ABS, whose performance is highly correlated with the unemployment rate.