The ratings are directly linked to the
The repack trust is structured as a simple pass-through. The distribution date for the repack trust will be set on the second business day after the distribution date for the underlying bond. The amount of interest payable to the certificateholders is equal to the interest payment received on the underlying bond, net of trust expenses, which are capped at the interest payments received for any related distribution date. Interest will be paid to all the repack certificates pro rata.
Similar to the interest payment, the principal distribution amount is equal to the principal payments received from the underlying bond. Initially, principal payment will be allocated pro rata to all outstanding certificates until the underlying bond balance reaches
KEY RATING DRIVERS
'Asf' Asset Quality: The rating on the certificates will be linked with the rating on the underlying bond, which is currently rated by Fitch at 'Asf'; Outlook Stable.
Robust Performance of the
Legal Structure: The underlying bond is repackaged through a true sale agreement to the repack trust from the seller. The beneficial interest of the repack trust will be owned by the certificate holders.
The ratings on the class A and EC-1 to EC-4 certificates are linked to the ratings on the underlying bond. For the underlying trust, Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels or lower excess spreads than the base case. This will result in a decline in available credit enhancement and the remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in the coverage. Rating sensitivity results should only be considered as potential outcomes, as the transaction is exposed to multiple dynamic risk factors. Rating sensitivity results should not be used as an indicator of future rating performance.
In addition, an assessment of the transaction's representations and warranties was also completed and found to be consistent with the ratings assigned to the certificates. For further information, see 'NC Trust 2005-GATE Re-Packaging Trust Representations and Warranties Appendix', dated
Additional information is available at 'www.fitchratings.com'.
--'U.S. Private Student Loan ABS Criteria,
--'Rating Criteria for Repackaged Senior Structured Finance Notes,'
--'Global Structured Finance Rating Criteria,'
--'Counterparty Criteria for Structured Finance and Covered Bonds,'
U.S. Private Student Loan ABS Criteria
Rating Criteria for Repackaged Senior Structured Finance Notes
Global Structured Finance Rating Criteria
Counterparty Criteria for Structured Finance and Covered Bonds
Source: Fitch Ratings
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