Fitch Upgrades Vermont Student Assistance Corporation 2010A; Outlook Stable
KEY RATING DRIVERS
Adequate Collateral Quality: The trust is collateralized by approximately \\$16.77 million of fixed-rate private student loans as of March 2015. The loans were originated by VSAC. Fitch projected remaining defaults to range between 12 - 14% as of the current principal balance based on data provided by VSAC. A recovery rate of 15% was applied which was determined to be appropriate based on data provided by the issuer.
Sufficient Credit Enhancement: This is provided by overcollateralization and excess spread. As of March 2015, the parity ratio is at 140.06%. The trust maintains sufficient credit enhancement with continuing and robust generation of excess spread, as well as overcollateralization. The minimum threshold to release to the issuer is 140%.
Adequate Liquidity Support: This is provided by a debt service reserve (DSR) sized at \\$270,100.
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.
Fitch upgrades the following ratings:
Vermont Student Assistance Corporation Series 2010A
--Class A-1 (2015) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2016) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2017) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2018) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2019) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2020) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2021) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2022) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2023) notes to 'AAsf' from 'A+sf'; Outlook Stable;
--Class A-1 (2024) notes to 'AAsf' from 'A+sf'; Outlook Stable.
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