KEY RATING DRIVERS
High Collateral Quality: Each of the trusts' collateral consists of 100% of 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 and excess spread. As of the
Adequate Liquidity Support: Liquidity support is provided by a reserve account where the balance is determined as the greater of 0.25% of the outstanding notes and
Acceptable Servicing Capabilities:
Since FFELP student loan asset backed securities rely 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 and better performance from private student loans could lead to future upgrades.
Fitch has affirmed the following ratings:
--Class A-1 note at 'AAAsf'; Outlook Stable;
--Class A-2 note at 'AAAsf'; Outlook Stable;
--Class A-3 note at 'AAAsf'; 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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