Fitch Affirms Federated Student Finance Corp.’s Senior Notes; Outlook Stable
Proquest LLC |
Fitch Ratings has affirmed the senior class series 2010A-1 notes for
On
KEY RATING DRIVERS
High Collateral Quality
The collateral consists of 100 percent 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 is provided by overcollateralization (OC), or the excess of the trust's asset balance over the note principal balance and excess spread. Fitch Ratings only rates the senior notes issued by the
Adequate Liquidity Support
Liquidity is provided by a reserve account sized at the greater of 1.0 percent of the current pool balance and
Acceptable Servicing Capabilities
Servicing will be provided by AES, the commercial servicing division for Pennsylvania Higher Education Assistance Agency PHEAA),
RATING SENSITIVITIES
Since FFELP student loan ABS 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 could lead to future upgrades.
Fitch affirms the following ratings:
--Series 2010A-1 notes at 'AAAsf'; Outlook Stable.
Additional information is available at 'fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' (
Global Structured Finance Rating Criteria
http://fitchratings.com/creditdesk/reports/ report_frame.cfm?rpt_id=708661
Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria - Effective
http://fitchratings.com/creditdesk/reports/ report_frame.cfm?rpt_id=616766
Additional Disclosure
Solicitation Status
http://fitchratings.com/gws/en/disclosure/ solicitation?pr_id=826419
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