OREANDA-NEWS. Fitch Ratings has taken various rating actions on the following senior and subordinate notes issued by GCO Education Loan Funding Trust-I March 2003 Trust Indenture (GCO Trust-I).

--2003-2 A-4AR affirmed at 'AAAsf'; Outlook Stable;
--2003-2 A-5AR affirmed at 'AAAsf'; Outlook Stable;
--2005-1 A-6AR 'AAAsf'; Rating Watch Negative Maintained;
--2005-2 A-6L affirmed at 'AAAsf'; Outlook Stable;
--2006-1 A-8L affirmed at 'AAAsf'; Outlook Stable;
--2006-1 A-9L affirmed at 'AAAsf'; Outlook Stable;
--2006-1 A-10L 'AAAsf'; Rating Watch Negative Maintained;
--2006-1 A-11L affirmed at 'AAAsf'; Outlook Stable;
--2003-2 B-2AR affirmed at 'AAsf'; Outlook Stable;
--2005-1 B-3AR affirmed at 'AAsf'; Outlook Stable;
--2005-2 B-4AR 'AAsf'; Rating Watch Negative Maintained.

KEY RATING DRIVERS

Maturity Risk: The Rating Watch Negative action is based on the heightened risk of the GCO series 2005-1 A-6AR series 2006-1 A-10L and series 2005-2 B-4AR notes missing their legal final maturity dates of March 1, 2042, Feb. 27, 2028, and May 25, 2042, respectively, which would result in an event of default. In an event of such technical default, Fitch would expect ultimate repayment of full principal and interest after the legal final. Fitch expects to resolve the Rating Watch Negative status once its revised FFELP criteria report is published. The magnitude of any potential rating action could vary depending on remaining time to maturity, recent payment trends, issuer actions such as loan purchases, or other external factors.

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. 'AAA'/Stable Outlook.

Credit Enhancement: Credit enhancement (CE) is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance), excess spread, and for the senior notes, subordination provided by the subordinate notes. As of February 2016, senior and subordinate parities are 109.13% (8.37% CE) and 103.38% (3.27% CE), respectively. The trust may release cash as long as senior and subordinate parities are 104.00% and 101.50%, respectively.

Liquidity Support: Liquidity support is provided by a debt service reserve fund sized at the greater of 0.75% of the notes outstanding and $1,500,000. The debt service reserve fund is sized at $9,474,218 as of February 2016.

Servicing Capabilities: Xerox-ES, formerly ACS Education Services, and Nelnet Servicing, Inc. are responsible for the day-to-day servicing of the loans in the trust. In Fitch's opinion, they are acceptable servicers of FFELP student loans.

On Nov. 18, 2015, Fitch released its exposure draft which delineates revisions it plans to make to the 'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria', dated June 23, 2014. Fitch has reviewed this transaction under both the existing and proposed criteria.

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.