KEY RATING DRIVERS
High Collateral Quality: The trust collateral consists of 100% Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the
Sufficient Credit Enhancement: Credit enhancement (CE) is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance), excess spread, and for the senior notes, subordination provided by the subordinate notes. As of
Adequate Liquidity Support: Liquidity support is provided by a debt service reserve fund sized at the greater of 0.75% of the notes outstanding and
Acceptable Servicing Capabilities: ACS Education Services,
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 CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.
Fitch has taken the following rating actions:
GCO Education Loan Funding Trust I -
--2003-2 A-4AR affirmed at 'AAAsf'; Outlook Stable;
--2003-2 A-5AR affirmed at 'AAAsf'; Outlook Stable;
--2005-1 A-3L affirmed at 'AAAsf'; Outlook Stable;
--2005-1 A-6AR affirmed at 'AAAsf'; Outlook Stable;
--2005-2 A-5L affirmed at 'AAAsf'; Outlook Stable;
--2005-2 A-6L affirmed at 'AAAsf'; Outlook Stable;
--2006-1 A-8L affirmed at 'AAAsf'; Outlook Stable;
--2006-1 A-9L affirmed at 'AAAsf'; Outlook Stable;
--2006-1 A-10L affirmed at 'AAAsf'; Outlook Stable;
--2006-1 A-11L affirmed at 'AAAsf'; Outlook Stable;
--2003-2 B-2AR upgraded to 'AAsf' from 'A+sf'; Outlook Stable;
--2005-1 B-3AR upgraded to 'AAsf' from 'A+sf'; Outlook Stable;
--2005-2 B-4AR upgraded to 'AAsf' from '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
Source: Fitch Ratings
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