--Class A affirmed at 'AAAsf'; Removed from Rating Watch Negative and assigned a Stable Rating Outlook;
--Class B upgraded to '
Although cash flows indicated a higher rating, Fitch upgraded the Class B notes to '
KEY RATING DRIVERS
Collateral Performance: Fitch assumes a base case of 13% for the non-rehab loans and 43.25% for the rehab loans, resulting in a weighted average base case default rate of approximately 19.2% and 51.4% under the '
Basis and Interest Rate Risk: Fitch applies its standard basis and interest rate stresses to this transaction as per its criteria.
Payment Structure: Cash flow scenarios for the 2014-3 notes were satisfactory under 'AAAsf' stress using Fitch's Student Loans ABS cash flow model (SLABS). Total credit enhancement (CE) is provided by overcollateralization and excess spread and the class A notes benefit from subordination provided by the class B note. As of the
Maturity Risk: Fitch's SLABS cash flow model indicates that all notes are paid in full on or prior to their legal final maturity of
Acceptable Servicing Capabilities: Day to day servicing is provided by Nelnet,
For transactions in surveillance, Fitch will treat certain assets such as claims filed as short-term assets in its cash flow analysis. Given that Fitch's current criteria is silent on the treatment of such assets, this treatment is considered a criteria variation. Fitch does not believe such variation has a measurable impact upon the ratings assigned.
Under the 'Counterparty Criteria for Structured Finance and Covered Bonds', dated
Since the FFELP student loan ABS relies on the
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01
Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds (pub.
Global Structured Finance Rating Criteria (pub.
Dodd-Frank Rating Information Disclosure Form
Source: Fitch Ratings