OREANDA-NEWS. Fitch Ratings has affirmed the ratings of the Access Group Inc., Series 2005-1 as follows:

--Class A-3 at 'AAAsf'; Outlook Stable;

--Class A-4 at 'AAAsf'; removed from Rating Watch Negative; assigned a Stable Outlook;

--Class B at 'AAsf'; removed from Rating Watch Negative; assigned a Stable Outlook.

KEY RATING DRIVERS

U. S. Sovereign Risk: The trust collateral comprises Federal Family Education Loan Program (FFELP) loans, with guaranties provided by eligible guarantors and reinsurance provided by the U. S. Department of Education (ED) for at least 97% of principal and accrued interest. The U. S. sovereign is currently rated 'AAA' with a Stable Outlook by Fitch.

Collateral Performance: Fitch assumes a base case default rate of 19.5%, 58.75% for the 'AAAsf' credit and 54.0% for the 'AAsf' credit stress scenario. The claim reject rate is assumed to be 0.25% for the base case, 2.0% for the 'AAAsf' case and 1.65% for the 'AAsf' case. Fitch applies its standard default timing curve, and trailing 12 months (TTM) CDR and prepayment assumptions for FFELP loans in its cash flow analysis. The TTM average of deferment, forbearance and IBR are 3.62%, 4.39% and 10.22% respectively. These are used as the starting point in the cash flow modeling. Subsequent declines or increases are modeled as per criteria. The borrower benefit of approximately 0.30% was provided by the issuer.

Basis and Interest Rate Risk: Fitch applies its standard basis and interest rate stresses to this transaction as per criteria.

Payment Structure: Cash flow scenarios for the 2005-1 notes were satisfactory under 'AAAsf' and 'AAsf' 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 June 2016 distribution repot, senior and total parity is 109.65% and 101.0%. Liquidity support for the 2005-1 notes is provided by a capitalized Interest Account which is at its floor of $1,006,500. Excess cash can be released from the trust when total parity is 101%.

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 June 22, 2037 for the class A notes and Sept. 22, 2037 for the class B note.

Operational Capabilities: Day to Day servicing is provided by Xerox Education Services. Fitch believes Xerox's servicing operations are acceptable at this time due to its long servicing history.

Under the Counterparty Criteria for Structured Finance and Covered Bonds, dated July 18, 2016, Fitch looks to its own ratings in analyzing counterparty risk and assessing a counterparty's creditworthiness. Fitch's criteria of 'F1+' for investments of greater than 30 days but less than 365 days and 'F1' for debt instruments of less than one year is not included in the Investment Securities definition which represents a criteria variation. Fitch doesn't believe that such variation have a measurable impact upon the ratings assigned.

Additionally, 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.

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, basis risk, and loan extension risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults, basis shock beyond Fitch's published stresses, lower than expected payment speed, and other factors 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.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10

Form ABS Due Diligence 15-E was not provided or reviewed by Fitch in relation to this rating action.