Fitch Affirms Brazos Education Loan Authority, Inc. Indenture 2012-1; Outlook Stable
KEY RATING DRIVERS
High Collateral Quality: The trust collateral consists of 100% of Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch currently rates the U.S. 'AAA' with a Stable Outlook.
Sufficient Credit Enhancement: CE is provided by excess spread and overcollateralization. Additionally the class A notes benefit from subordination provided by the class B notes. Parity levels continue to increase as cash cannot be released until all the bonds are paid-in-full. As of April 2015, the total and senior parity levels were at 105.94% and 110.04%, respectively. Additionally, the trust is in turbo and no excess will be released until all the notes have been paid in full.
Adequate Liquidity Support: Liquidity support is provided by a reserve account. The reserve is sized equal to the greater of 0.25% of the current pool balance and 0.15% of the initial pool balance. The balance of the reserve account as of April 2015 was \$211,588.
Acceptable Servicing Capabilities: Xerox Education Services, Inc., American Education Services, Navient Solutions, Inc. (fka Sallie Mae, Inc.), Great Lakes, Nelnet and Brazos Loan Servicing, Inc. are responsible for the day to day servicing of the student loans. Fitch believes these servicers to be acceptable servicers of FFELP student loans.
RATING SENSITIVITIES
Since FFELP student loan ABS rely 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 and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch's published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following ratings:
Brazos Education Loan Authority, Inc. Indenture Series 2012-1:
--Class A at 'AAAsf'; Outlook Stable;
--Class B at 'AAsf''; Outlook Stable.
Комментарии