OREANDA-NEWS. August 03, 2015. Fitch Ratings has affirmed the SLM Student Loan Trust 2007-6 and SLM Student Loan Trust 2007-8 senior notes at 'AAAsf' and subordinate notes at 'Asf'. The Outlook on the class A-4 notes of both trusts has been revised to Negative from Stable.

The Outlook revision is due to Fitch's belief that the class A-4 notes of both trusts 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 date of June 25, 2027 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.

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

KEY RATING DRIVERS

High Collateral Quality: The trusts' collateral comprises 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. sovereign at 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement (CE): CE is provided by excess spread, and for the class A notes, subordination of the class B notes. As of June 2015, total and senior parity ratios are 100% and 104.20% (4.03% CE) for both SLM 2007-6 and SLM 2007-8. Cash will continue to be released from the trusts given the 100% target parity ratios are maintained.

Adequate Liquidity Support: Liquidity support for the trusts is provided by reserve accounts. The reserve for SLM 2007-6 is equal to the greater of 0.25% of the pool balance and \\$2,250,000, currently sized at \\$2,537,642.50. The reserve for SLM 2007-8 is equal to the greater of 0.25% of the pool balance and \\$2,257,045, currently sized at \\$2,540,532.51.

Acceptable Servicing Capabilities: Day-to-day servicing is provided by Navient Solutions, Inc. (formerly known as Sallie Mae, Inc.), In Fitch's opinion, Navient is 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 build-up of CE 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 2007-6
--Class A-3 notes at 'AAAsf; Outlook Stable;
--Class A-4 notes at 'AAAsf; Outlook to Negative from Stable;
--Class A-5 notes at 'AAAsf; Outlook Stable;
--Class B notes at 'Asf'; Outlook Stable.

SLM Student Loan Trust 2007-8
--Class A-3 notes at 'AAAsf; Outlook Stable;
--Class A-4 notes at 'AAAsf; Outlook to Negative from Stable;
--Class A-5 notes at 'AAAsf; Outlook Stable;
--Class B notes at 'Asf'; Outlook Stable.