KEY RATING DRIVERS
High Collateral Quality:
The trust collateral is comprised of 100% of Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the
Rating Watch Negative:
Credit Enhancement is provided by overcollateralization, excess spread, and for the class A notes, subordination provided by the class B notes. As of the
Adequate Liquidity Support
Liquidity support is provided by a reserve account which is determined as the greater of 0.25% of the pool balance and
Acceptable Servicing Capabilities
Nelnet Inc. as the servicer is responsible for the day-to-day servicing of this trust. In Fitch's opinion, Nelnet is an acceptable servicer of FFELP student loans.
Since the FFELP student loan ABS relies on the U.S. government to reimburse defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA' U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch's published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.
Fitch has taken the following rating actions:
--Class A-4 note 'AAAsf'; Rating Watch Negative Maintained;
--Class A-5 note 'AAAsf'; Rating Watch Negative Maintained;
--Class A-6 note 'AAAsf'; Rating Watch Negative Maintained;
--Class B note affirmed at 'A+sf'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' (
Global Structured Finance Rating Criteria
Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria - Effective
Source: Fitch Ratings
Most Popular Stories
- Reid: Bundy Backers Are 'Domestic Terrorists'
- Ex-BP Employee Settles Insider Trading Charges
- Twitter Offers App Install Ads
- Hiring Fair for Veterans, Job Seekers
- Unemployment Rates Down, Job Gains Up in March
- 'Boats 'N Hoes' PAC Sunk by Complaint
- Natural Gas Shoots Up on Bullish Stockpile Report
- 8 Million Signups Put Obamacare Ahead of Predictions
- Judge Tells Dad to Quit Emailing His Kids in All Caps
- Naya Rivera and Lea Michele: The 'Glee' Fight That Never Was?