OREANDA-NEWS. Fitch Ratings affirms all ratings for the outstanding notes issued by National Collegiate Trusts 2003-1, 2004-1, and 2004-2, with the exception of the class B note from the 2004-2 trust. Fitch has downgraded the 2004-2 class B note to 'Csf' from 'CCsf' to reflect the revised recovery estimate (RE) to 0% from 55%.

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

KEY RATING DRIVERS

Collateral Quality: All trusts are collateralized by private student loans originated by various financial institutions and lenders and securitized by First Marblehead Corporation. At deal inception all loans were guaranteed by The Education Resources Institute (TERI), however no credit was given to the TERI guaranty since TERI filed for bankruptcy on April 7, 2008.

Credit Enhancement: Credit Enhancement (CE): CE is provided by the generation of excess spread. Additionally, the senior notes will benefit from subordination from lower notes. The projected remaining defaults for all trusts range from 20% to 23% of the current balance. Current loss coverage multiples are commensurate with the current ratings for each transaction.

Liquidity Support: Support for the notes is provided by a reserve account for each trust.

Servicing Capabilities: The portfolio is serviced by PHEAA. Fitch believes PHEAA is an acceptable servicer of private student loans.

For each trust, Fitch conducted a review of the collateral performance that involved the calculation of loss coverage multiples based on the most recent variables. A projected net loss amount was compared to available credit enhancement to determine the loss multiples. Fitch used historical vintage loss data provided by the originator in addition to other analytical methods the agency sees as fit to form a loss timing curve representative of the private student loan collateral pools of each trust. After giving credit for seasoning of loans in repayment, Fitch applied the current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the remaining life for each trust. A recovery rate of 25% was applied, which was determined to be appropriate based on the latest data provided by the issuer.

The available credit enhancement for the trusts consists of excess spread, overcollateralization (if any), and subordination where applicable. Fitch assumed excess spread to be the lesser of the historical average excess spread (earning on the assets minus interest payments to bondholders and fees) and the most recent 12-month average excess spread, and applied that same rate over the remaining life.

Fitch also assigned Recovery Estimates (RE) to classes rated 'CCC' or below as these ratings classify these notes as distressed structured finance securities. Fitch has calculated a RE which represents its calculation of expected principal recoveries, as a percentage of current note principal outstanding. Each of the notes rated 'CCC' or below was assigned an RE, given Fitch's calculation.

The collateral supporting each trust consists entirely of private student loans originated by various financial institutions and lenders and securitized by First Marblehead Corporation First Marblehead. Loan proceeds are used by students to assist in financing the cost of attending undergraduate, law school, business school, medical school, dental school, and other graduate programs.

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 notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch will continue to monitor the performance of these trusts.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has taken the following rating actions:

National Collegiate Student Loan Trust 2003-1:
--Class A-7 affirmed at 'BBsf', Outlook Negative;
--Class A-IO affirmed at 'BBsf', Outlook Negative;
--Class B-1 affirmed at 'Csf', RE 0%;
--Class B-2 affirmed at 'Csf', RE 0%.

National Collegiate Student Loan Trust 2004-1:
--Class A-2 affirmed at 'CCsf', RE 85%;
--Class A-3 affirmed at 'CCsf', RE 85%;
--Class A-4 affirmed at 'CCsf', RE 85%;
--Class A-IO-2 affirmed at 'CCsf', RE 85%;
--Class B-1 affirmed at 'Csf', RE 0%;
--Class B-2 affirmed at 'Csf', RE 0%.

National Collegiate Student Loan Trust 2004-2/NCF Grantor Trust 2004-2:
--Class A-4 affirmed at 'Bsf', Outlook Negative;
--Class A-5-1 affirmed at 'Bsf', Outlook Negative;
--Class A-5-2 affirmed at 'Bsf', Outlook Negative;
--Class B downgraded to 'Csf' from 'CCsf', RE 0%;
--Class C affirmed at 'Csf', RE 0%.