Fitch Affirms NorthStar 2012-A Notes; Outlook Stable
--NorthStar Student Loan Trust II, Adjustable Rate Student Loan Revenue Bonds series 2012-A notes at 'AAsf/F1+sf'; Outlook Stable.
KEY RATING DRIVERS
The ratings are based on the support provided by a direct-pay letter of credit (LOC) issued by Royal Bank of Canada providing full support to the bonds. Royal Bank of Canada is obligated to make payments of principal and interest on the bonds upon maturity, acceleration and redemption, as well as the purchase price for tendered bonds. The current rating on Royal Bank of Canada is 'AA/F1+'; Outlook Stable.
The rating will expire on the earliest to occur of: (1) Dec. 15, 2015 - which is the stated expiration date of the LOC - unless such date is extended; (2) conversion to an alternate mode; (3) any prior termination of the LOC; or (4) defeasance of the bonds.
RATING SENSITIVITIES
The rating of the bonds is exclusively tied to the long- and short-term ratings that Fitch maintains on the bank providing the LOC and will reflect all changes to the bank's ratings.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
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