The student lending platform has now securitised more than $1bn of its loans.
US student lending platform CommonBond has received its first ever AAA ratings. The platform’s latest securitisation, a $233.75m deal, has received provisional AAA ratings from both Moody’s and DBRS.
The transaction is CommonBond’s sixth to date and brings its total securitised loan amount to $1.22bn.
Moody’s is clearly getting more comfortable with CommonBond. The ratings agency recently placed six tranches issued by the student lender on review for upgrade, with $488m of asset-backed securities affected. This review was based primarily on lower expected operational risk associated with CommonBond as a sponsor and administrator of securitisations.
Now Moody’s has assigned provisional ratings of (P)Aaa (sf) to the senior tranches of notes issued by the CommonBond Student Loan Trust 2018-A-GS (CBSLT 2018-A-GS). Moody’s expects to see cumulative losses on the loan pool of 2.0 per cent. Once the securities have been sold, the ratings agency will endeavour to assign final ratings.