Fitch Affirms New Mexico Educational Assistance Foundation 2010-2 Senior Notes
Proquest LLC |
The following is from Fitch Ratings on
Fitch Ratings affirms the
Key Rating Drivers
High Collateral Quality: The trust collateral is comprised of 100 percent of Federal Family Education Loan Program loans with guaranties provided by eligible guarantors and reinsurance provided by the
Sufficient Credit Enhancement: Credit enhancement is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of
Adequate Liquidity Support: Liquidity support for the notes is provided by a reserve fund sized at the greater of 1.10 percent of the principal balance of the outstanding notes and
Acceptable Servicing Capabilities: Day-to-day servicing is provided by the
Rating Sensitivities
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 affirmed the following ratings:
New Mexico Educational Assistance Foundation Series 2010-2:
--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2 at 'AAAsf'; Outlook Stable;
--Class A-3 at 'AAAsf'; Outlook Stable.
Additional information is available at 'fitchratings.com'.
((Comments on this story may be sent to [email protected]))
Copyright: | (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |
Wordcount: | 342 |
Arch Mortgage Insurance Introduces Technology Tools
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News