S&P: Navient Student Loan Trust 2018-2 $999 Million Notes Assigned Ratings

S&P Global Ratings today assigned its ratings to Navient Student Loan Trust 2018-2's $999 million student loan-backed notes series 2018-2 (see list). The final transaction was upsized to $999 million from the preliminary transaction of $748.6 million, but there were no material changes to the transaction structure or collateral composition.

The note issuance is an asset-backed securities (ABS) transaction backed by a pool of student loans that are at least 97% reinsured by the U. S. federal government.

The ratings reflect:The transaction's expected initial class A-1, A-2, and A-3 parities of approximately 461%, 205%, and 104%, respectively. Class A-1 parity is defined as the percentage of total assets divided by the class A-1 notes amount. Class A-2 parity is defined as the percentage of total assets divided by the total of the class A-1 and A-2 amounts. Class A-3 parity is defined as the percentage of total assets divided by the total of the class A-1, A-2, and A-3 amounts. The transaction's expected initial total parity of approximately 102%. Total parity for this transaction is defined as the percentage of total assets divided by the class A-1, A-2, A-3, and B notes (collectively, the notes) amounts. The approximate 1.45% class B notes subordination available for the class A notes. (Subordination defined as the class B note balance divided by the total note balance.)The reserve account, which equals 1.25% of the initial pool balance ($12,625,150) at closing and is required to be maintained at 1.25% of the current pool balance until December 2018, when the reserve requirement decreases to 1.00% of the current pool balance. The reserve requirement decreases again in October 2028 to 0.25% of the current pool balance. The reserve has a floor equal to 0.10% of the initial pool balance ($1,010,012).The transaction's payment structure, which builds overcollateralization to the greater of 2.35% of the current pool balance and $3.8 million (0.37% of the initial pool balance) from 2.35% at closing. (Overcollateralization is defined as the excess of the pool balance and the reserve over the total notes, divided by the pool balance plus the reserve balance.)Our view that the likelihood of the payment structure changing because of a nonmonetary event of default is sufficiently remote, allowing for different ratings on the class A notes. The U. S. federal government's reinsurance of at least 97% of the loans' principal and interest. Our expectation of timely interest and principal payments made by the legal final maturity date in the cash flow runs that simulated our 'AAA', 'AA+', and 'A' rating credit stress and liquidity scenarios. A credit stability scenario analysis, which indicates that under moderately stressful economic conditions (defined as approximately 2.25x the expected defaults), the 'AAA (sf)' and 'AA+ (sf)' ratings would not decline more than one and three rating categories in the first and third years, respectively, and the 'A (sf)' rating would not decline more than two and three rating categories in the first and third years, respectively. The transaction's legal structure.
[related-news]

Похожие новости

{related-news}
[/related-news]

Добавить комментарий

Автору будет очень приятно узнать обратную связь о своей новости.

    • bowtiesmilelaughingblushsmileyrelaxedsmirk
      heart_eyeskissing_heartkissing_closed_eyesflushedrelievedsatisfiedgrin
      winkstuck_out_tongue_winking_eyestuck_out_tongue_closed_eyesgrinningkissingstuck_out_tonguesleeping
      worriedfrowninganguishedopen_mouthgrimacingconfusedhushed
      expressionlessunamusedsweat_smilesweatdisappointed_relievedwearypensive
      disappointedconfoundedfearfulcold_sweatperseverecrysob
      joyastonishedscreamtired_faceangryragetriumph
      sleepyyummasksunglassesdizzy_faceimpsmiling_imp
      neutral_faceno_mouthinnocent
Кликните на изображение чтобы обновить код, если он неразборчив

Комментариев 0