OREANDA-NEWS. Fitch Ratings has affirmed the ratings of the class A-1 and A-2 bonds of Iowa Student Loan Liquidity Corporation, Series 2011A at 'Asf'. The Rating Outlook remains Stable.

The affirmations of class A-1 and A-2 are based on a sufficient loss coverage multiple commensurate with an 'Asf' rating.

A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

Adequate Collateral Quality: The ISL 2011A bonds are secured by student loans originated under ISL's private student loan programs. Based on the trust's performance, Fitch estimates remaining defaults to range between 13% and 16% as a percentage of the current principal balance. Recovery is assumed to be 20% in our analysis.

Sufficient Credit Enhancement (CE): Transaction CE is sufficient to provide loss coverage multiples commensurate to Fitch's 'A' rating category. CE is provided by overcollateralization (OC; the excess of the trust's asset balance over the bond balance) and excess spread. The reported parity ratio (total assets to total liabilities) for ISL 2011A is 218.9% as of June 30, 2016. In addition, Iowa Student Loan (ISL) entered into an interest rate swap agreement to mitigate interest rate risk, since approximately 96% of the loans are indexed to 3-month LIBOR and bond interest rates are fixed.

Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at the greater of 2% of ISL 2011A's bond balance and $4,195,000. The current reserve account balance is $4,530,600.

Satisfactory Servicing Capabilities: Aspire Resources, a subsidiary of ISL, services the portfolio of loans, and Pennsylvania Higher Education Assistance Agency acts as the back-up servicer. Fitch has reviewed the servicing operations of Aspire Resources and views it to be an acceptable servicer.

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 bonds and may make certain bond 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.

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

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

Fitch affirms the following bonds:

--Senior class A-1 (2016 - 2023) at 'Asf'; Outlook Stable;

--Senior class A-2 (2023 - 2030) at 'Asf'; Outlook Stable.