Navient: DBRS Morningstar Assigns Provisional Ratings to Navient Private Education Refi Loan Trust 2021-F

DBRS, Inc. (DBRS Morningstar) has assigned provisional ratings to the following categories of notes (the Notes) to be issued by Navient Private Education Refi Loan Trust 2021-F (Navigate 2021-F).

$ 945,700,000 Rated class A tickets AAA (sf)

$ 45,600,000 To classify B Notes noted AA (sf)

Provisional ratings are based on DBRS Morningstar’s review of the following analytical considerations:

The transaction assumptions take into account DBRS Morningstar’s basic macroeconomic scenarios for rated sovereign economies, available in its commentary “Baseline Macroeconomic Scenarios for Rated Sovereigns”, published on September 8, 2021. These benchmark macroeconomic scenarios replace the moderate and adverse COVID-19 pandemic scenarios from DBRS Morningstar, which were first published in april 2020. The baseline macroeconomic scenarios reflect the view that while COVID-19 remains a risk to the outlook, the uncertainty surrounding the macroeconomic effects of the pandemic has gradually faded. The current median forecasts taken into account in the basic macroeconomic scenarios incorporate some risks associated with new epidemics, but remain fairly positive on the outlook for recovery given the expectations of continued support for fiscal and monetary policies. The policy response to COVID-19 could nonetheless bring other risks to the fore in the months and years to come.

Capital structure of the transaction, proposed ratings, form and sufficiency of the available credit enhancement.

The ability of the transaction to withstand stressed cash flow assumptions and repay investors in accordance with the terms of the contract Navigate 2021-F transaction documents.

The sequential compensation structure.

Structural features of the transaction which require Class A Notes to be fully amortized to turbo principal in certain circumstances.

The quality and credit characteristics of student loans and the underlying borrowers.

The ability to Navient Solutions, LLC as a service agent and Serious LLC operations (Earnest) as a subcontractor to perform collateral pool collections and other required activities.

The legal structure and expected presence of legal opinions that will address the actual sale of the student loans, the non-consolidation of the trust, the fact that the trust has valid first-class security interests in the assets and consistency with the DBRS Morningstar ‘Legal Criteria we Structured financing. ‘

The collateral underlying the Notes will consist of fixed rate and variable rate student loan refinances. Earnest, which was acquired by Navient Company in november 2017, is an online lending platform primarily focused on providing student loans through United States.

ESG CONSIDERATIONS

A description of how DBRS Morningstar views 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 https://www.dbrsmorningstar.com/research/373262.

Remarks:

All figures are in we dollars, unless otherwise specified.

The main methodology is scoring we Securitizations of private student loans (November 5, 2020), which can be found on dbrsmorningstar.com under Methodologies and Criteria.

For more information on rating methodologies and coronavirus disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883.

The rated entity or its related entities participated in the rating process for this rating action. DBRS Morningstar has 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 more information on the sensitivity of the assumptions used in the rating process.

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

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Assessments

Date Issued	Debt Rated	Action	Rating	Trend	Attributesi

United States = Principal Analyst based in the United States

CA = Lead Analyst based at Canada

EU = Lead Analyst based in the EU

UK = Senior analyst based at UK

E = EU approved

U = UK approved

Unsolicited participation with access

Unsolicited participation without access

Unsolicited Non-participant

15-Sep-21 	Class A	Provis.-New	AAA (sf)	--	US

15-Sep-21 	Class B	Provis.-New	AA (sf)	--	US

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