OREANDA-NEWS. Fitch Ratings has affirmed all notes issued by Panhandle-Plains Higher Education Authority, Inc. series 2011-2 at 'AAAsf'. The Rating Outlook remains Stable for all notes.

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. The Stable Outlook on the notes is consistent with Fitch's U.S. sovereign rating of 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement: Credit Enhancement (CE) is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of May 31, 2015, the reported parity is 108.88% (8.16% CE). This trust is a turbo structure therefore no cash is released until the note is 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 bond balance, and \\$904,695.

Acceptable Servicing Capabilities: ACS Education Services (ACS) is responsible for the day to day servicing and administration of the student loans. Fitch believes ACS to be an acceptable servicer 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 build-up of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE

Fitch was not provided due diligence information from any third parties relating to the Panhandle-Plains Higher Education Authority, Inc. Series 2011-2.

Fitch has affirmed the following ratings:

Panhandle-Plains Higher Education Authority, Inc. Series 2011-2

--Class A-1 note at 'AAAsf'; Outlook Stable;

--Class A-2 note at 'AAAsf'; Outlook Stable;

--Class A-3 note at 'AAAsf'; Outlook Stable.