KEY RATING DRIVERS
High Collateral Quality: ISAC 2010-1 collateral consists of 100% Federal Family Education Loan Program (FFELP) loans. The credit quality of the trusts 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 (CE): The ISAC 2010-1 notes benefit from overcollateralization (the excess of trust's asset balance over bond balance) and excess spread. As of
Adequate Liquidity Support: Liquidity support is provided by a
Acceptable Servicing Capabilities:
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 affirmed the following ratings:
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' dated
--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' dated
Source: Fitch Ratings
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