OREANDA-NEWS. Fitch Ratings has assigned ratings to the Vermont Student Assistance Corporation (VSAC) senior series 2016A education loan revenue bonds issued under the 2012 Indenture of Trust, as amended and supplemented by the Series 2016A Supplemental Indenture as follows:

--Serial 2021 'Asf'; Outlook Stable;

--Serial 2022 'Asf'; Outlook Stable;

--Serial 2023 'Asf'; Outlook Stable;

--Serial 2024 'Asf'; Outlook Stable;

--Serial 2025 'Asf'; Outlook Stable;

--Serial 2026 'Asf'; Outlook Stable;

--Serial 2027 'Asf'; Outlook Stable;

--Serial 2028 'Asf'; Outlook Stable;

--Serial 2029 'Asf'; Outlook Stable;

--Serial 2030 'Asf'; Outlook Stable;

--Serial 2031 'Asf'; Outlook Stable;

--Serial 2032 'Asf'; Outlook Stable;

--Serial 2034 'Asf'; Outlook Stable.

Fitch has also confirmed the existing bonds issued under the 2012 Indenture of Trust, dated July 1, 2012, as amended and supplemented by the Series 2012A Supplemental Indenture and Series 2013A Supplemental Indenture at closing at 'Asf' with a Stable Rating Outlook. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Adequate Collateral Quality: The master trust will be collateralized by existing and new fixed-rate private student loans. New loans will be originated from deal closing to June 15, 2017. It is expected that approximately $37.2 million of student loans will be added to the trust at the end of the acquisition period. All loans will be originated under VSAC's Student Advantage Loan Program and Parent Advantage Loan Program.

Sufficient Credit Enhancement (CE): Transaction cash flows were satisfactory under all stressed scenarios at Fitch's 'Asf' rating category. CE is provided by overcollateralization and excess spread. The parity ratio is expected to be 135.05% at closing. Cash will be released to the issuer when the parity reaches 136%.

Adequate Liquidity Support: Liquidity support will be provided by a $1,173,000 debt service reserve fund sized at 2% of the outstanding bond balance, with a minimum balance of $300,000. Additionally, there will be a capitalized interest account sized at $4,890,000, which will amortize according to a schedule and will terminate on Dec. 15, 2020.

Satisfactory Servicing Capabilities: Day-to-day servicing will be provided by VSAC. Fitch considers the servicing operations of VSAC to be acceptable, as VSAC has been servicing its own private student loans since 1994.

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 and/or prepayment speeds than the base case. This will result in a decline in available CE and the remaining loss coverage levels available to the notes. Therefore, note ratings may be susceptible to potential negative rating actions, depending on the extent of the decline in the coverage.

Rating sensitivity results should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. Rating sensitivity should not be used as an indicator of future rating performance.

Fitch's stress analysis is discussed in the presale titled 'Vermont Student Assistance Corporation Senior Series 2016A', dated May 6, 2016.

DUE DILIGENCE USAGE

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

Fitch confirms the following ratings:

VSAC, 2012 Indenture of Trust and Series 2012A Supplemental Indenture Senior 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, 2012 Indenture of Trust and Series 2013A Supplemental Indenture, Senior 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.