OREANDA-NEWS. Fitch Ratings affirms both the senior and subordinate notes issued by SLM Student Loan Trust 2003-8 and SLM Student Loan Trust 2003-9 at 'AAAsf'. The Rating Outlook for the senior notes remains Stable, while the Rating Outlook for the subordinate notes is revised to Negative from Stable.

The Rating Outlook revision is due to Fitch's belief that the subordinate notes carry a heightened level of extension risk. Based on Fitch's cash flow modelling runs, the notes were not paid in full by their legal final maturity dates on June 17, 2024 and March 15, 2024, for SLM 2003-8 and SLM 2003-9 respectively, in a stressed scenario. Under such scenarios, this may result in technical defaults, although Fitch would expect ultimate repayment of full principal and interest afterwards.

KEY RATING DRIVERS
High Collateral Quality: Both SLM 2003-8 and SLM 2003-9 collateral consists of 100% Federal Family Education Loan Program (FFELP) loans. The credit quality of the trusts 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): The notes for both trusts benefit from overcollateralization (the excess of trust's asset balance over bond balance) and excess spread. As of May 2015, reported parity is 107.48% for SLM 2003-8 and 106.71% for SLM 2003-9. Additionally, both trusts are in turbo as they passed the 10% clean up call and excess spread is going to the pay-down of note principal.

Adequate Liquidity Support: Liquidity support is provided by a Reserve Fund sized at the greater of 0.25% of the pool balance and $2,005,422 for SLM Student Loan Trust 2003-8; and for SLM Student Loan Trust 2003-9, the greater of 0.25% of the pool balance and $1,505,695.

Acceptable Servicing Capabilities: Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.), as servicer, will be responsible for servicing the portfolios. Fitch has reviewed the servicing operations of Navient Solutions and believes it to be an acceptable servicer of FFELP student loans.

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 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:

SLM Student Loan Trust 2003-8:
--Class A-4 at 'AAAsf'; Outlook Stable
--Class B at 'AAAsf'; Outlook revised to Negative from Stable.

SLM Student Loan Trust 2003-9:
--Class A-4 at 'AAAsf'; Outlook Stable;
--Class B at 'AAAsf'; Outlook revised to Negative from Stable.