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Fitch Affs Access to Loans for Learning Student Loan Corp., Ser 2012-I Sr Notes; Upgrades Sub Notes

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings affirms the senior notes issued from Access to Loans for Learning Student Loan Corp., Series 2012-I (ALL SLC 2012-I) and upgrades the ALL SLC 2012-I subordinate notes. The Rating Outlook on the senior notes remains Stable and the Rating Outlook on the subordinate notes has been revised to Stable from Positive. The upgrade is driven by stable collateral performance, hence better coverage for the subordinate notes.

Key Rating Drivers

High Collateral Quality: The trust 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 U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch currently rates the U.S. sovereign rating ‘AAA’, Outlook Stable.

Sufficient Credit Enhancement: CE is provided by overcollateralization and excess spread. In addition, the class A notes benefit from subordination from the class B notes. As of October 2014, senior and total parity are at 107.04% and 103.20%, respectively. The deal is currently in turbo; no cash can be released until all bonds are paid in full.

Adequate Liquidity Support: Liquidity support for notes is provided by a reserve account currently at $406,228 (0.25% of the pool balance) with a floor of $316,520.

Acceptable Servicing Capabilities: Navient Solution Inc., XES, and Great Lakes are all responsible for servicing the trust. Fitch believes all three servicers are acceptable servicers of FFELP student loans.

Rating Sensitivities

Since 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:

Access to Loans for Learning Student Loan Corp., Series 2012-I:

— Class A notes affirmed at ‘AAAsf’; Outlook Stable;

— Class B note upgraded to ‘AAsf’ from ‘Asf’; Outlook revised to Stable from Positive.

A comparison of the transaction’s representations, warranties, and enforcement mechanisms (RW&Es) to those of typical RW&Es for FFELP asset-backed securities is available in the presale appendix. This presale appendix and Fitch’s special report on “Representations, Warranties, and Enforcement Mechanisms on Global Structured Finance Transactions,” may be accessed via the links provided below.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’ dated May 20, 2014;

–‘Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria’ dated June 23, 2014;

–‘Access to Loans for Learning Student Loan Corporation, Series 2012-I – Appendix’ dated Dec 12, 2012;

–‘Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions’ dated Oct. 31, 2014.

Applicable Criteria and Related Research:

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248

Access to Loans for Learning Student Loan Corporation, Series 2012-I — Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696043

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750530

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=946336

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Security Upgrades & DowngradesFinanceFitch RatingsStudent LoanFFELP
Contact:

Fitch Ratings

Primary Analyst

Charlene M. Davis

Director

+1-212-908-0213

Fitch Ratings, Inc.

33 Whitehall St.

New York, NY 10004

or

Committee Chairperson

Tracy Wan

Senior Director

+1-212-908-9171

or

Media Relations:

Sandro Scenga, New York, +1 212-908-0278

Email:

sandro.scenga@fitchratings.com

Read more from the original source:
Fitch Affs Access to Loans for Learning Student Loan Corp., Ser 2012-I Sr Notes; Upgrades Sub Notes

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