OREANDA-NEWS. Fitch Ratings has affirmed the senior series 2012A and 2013A of the Vermont Student Assistance Corporation (VSAC) education loan revenue bonds issued under the 2012A Indenture as follows:

VSAC, 2012A Indenture, Series 2012A
--Serial 2017 at 'Asf'; Outlook Stable;
--Serial 2018 at 'Asf'; Outlook Stable;
--Serial 2019 at 'Asf'; Outlook Stable;
--Serial 2019 LO at 'Asf'; Outlook Stable;
--Serial 2020 LO at 'Asf'; Outlook Stable;
--Serial 2021 at 'Asf'; Outlook Stable;
--Serial 2021 LO at 'Asf'; Outlook Stable;
--Serial 2022 at 'Asf'; Outlook Stable;
--Serial 2023 at 'Asf'; Outlook Stable;
--Serial 2024 at 'Asf'; Outlook Stable;
--Serial 2025 at 'Asf'; Outlook Stable;
--Serial 2026 at 'Asf'; Outlook Stable;
--Serial 2029 at 'Asf'; Outlook Stable;
--Serial 2031 at 'Asf'; Outlook Stable;
--Term 2032 at 'Asf'; Outlook Stable.

VSAC, 2012A Indenture, Series 2013A
--Serial 2017 at 'Asf'; Outlook Stable;
--Serial 2018 at 'Asf'; Outlook Stable;
--Serial 2019 at 'Asf'; Outlook Stable;
--Serial 2020 at 'Asf'; Outlook Stable;
--Serial 2021 at 'Asf'; Outlook Stable;
--Serial 2022 at 'Asf'; Outlook Stable;
--Serial 2023 at 'Asf'; Outlook Stable;
--Serial 2024 at 'Asf'; Outlook Stable;
--Serial 2025 at 'Asf'; Outlook Stable;
--Serial 2026 at 'Asf'; Outlook Stable;
--Serial 2027 at 'Asf'; Outlook Stable;
--Serial 2030 at 'Asf'; Outlook Stable.

KEY RATING DRIVERS

Adequate Collateral Quality: The trust is collateralized by approximately $32.93 million of fixed-rate private student loans. The loans were originated according to the underwriting criteria for VSAC's Fixed-Rate Private Student Advantage Loan Program. Fitch's current lifetime gross default projection is 16% - 18%, with a 20% recovery assumption.

Sufficient Credit Enhancement: Credit enhancement is provided by overcollateralization and excess spread. Total parity for the class A-1 notes is currently 130.47% as of March 2016. The trust can release cash given that the parity threshold of 128% is maintained.

Adequate Liquidity Support: Liquidity support for the notes is provided by a reserve account which is sized at the greater of 2% of the bonds outstanding and $300,000. The reserve fund is currently $615,200 as of March 2016. Additionally, there is a capitalized interest account currently sized at $3,390,000 which reduces according to a schedule which terminates on June 15, 2018.

Acceptable Servicing Capabilities: Day-to-day servicing is provided by VSAC. Fitch believes the servicing operations are acceptable at this time.

RATING SENSITIVITIES
As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in CE and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch will continue to monitor the performance of the trust.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.