OREANDA-NEWS. September 15, 2015. Fitch Ratings has affirmed the senior and subordinate notes for KeyCorp Student Loan Trust 2005-A (Group II) at 'AAsf' and 'BBBsf', respectively. Fitch has also affirmed the junior subordinate notes at 'BBsf'. The Rating Outlook for the senior notes has been revised to Positive from Stable and the Outlook for subordinate notes revised to Stable from Negative. The Outlook for the junior subordinate notes remains Negative.

The Positive Outlook for the senior notes is due to increased senior parity and loss coverage, as the trust continues to pay note principal sequentially to the senior notes before the subordinate and junior subordinate notes.

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

KEY RATING DRIVERS

Collateral Quality: The trust is collateralized by approximately \\$206 million of private student loans originated by KeyBank under the Key Alternative Loan program, Campus Door program, Private Graduate program, and TERI program. The projected remaining defaults are expected to range between 15% - 18% of the current pool balance. A recovery rate of 15% was applied based on historical data.

Credit Enhancement (CE): CE is provided by overcollateralization, excess spread and subordination for the Class A and B notes. Additionally, this is a bifurcated trust so the group can receive excess from the KSLT 2005-A Group I Federal loan pool. As of the May 2015 servicer report, the Fitch calculated parity ratios, which includes the reserve account have increased since the last review from 216.09% to 227.51% for the Class A notes and from 125.35% to 126.54% for the Class B notes. The Class C parity has maintained at 104.53%. The trust is currently releasing excess cash since it has reached is target Class C parity of 101.00% (excluding the reserve account).

Liquidity Support: Liquidity support for the trust is provided by a debt service reserve fund which is currently at \\$7.25 million, representing 3.5% of the outstanding pool balance.

Servicing Capabilities: Day-to-day servicing is provided by KeyBank, NA, Pennsylvania Higher Education Assistance Agency, and Great Lakes Educational Loan Services, Inc. Fitch believes all servicing operations are acceptable servicers of private student loans.

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 bonds and may make certain bond 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 has affirmed the following ratings and revised Outlooks as indicated:

KeyCorp Student Loan Trust 2005-A (Group II)

--Senior class II-A-4 at 'AAsf'; Outlook revised to Positive from Stable;
--Subordinate class II-B at 'BBBsf'; Outlook revised to Stable from Negative;
--Junior Subordinate class II-C at 'BBsf'; Outlook Negative.