OREANDA-NEWS. Fitch Ratings affirms the student loan note at 'AAAsf' issued by State Board of Regents of the State of Utah Series 2012-1. The Rating Outlook remains Stable for the note.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral comprises Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. The current U.S. sovereign rating is '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 July 2015, total parity is 107.5% (6.98% CE). The trust is in turbo, and no funds will be released until the note is paid in full.

Adequate Liquidity Support: Liquidity support for the series 2012-1 notes is provided by a reserve fund currently sized at \\$814,396.

Acceptable Servicing Capabilities: Day-to-day servicing is provided by the State Board of Regents of the State of Utah (the board). Pennsylvania Higher Education Assistance Agency (PHEAA) is the backup servicer for loans serviced by the board. Fitch believes all entities to be acceptable servicers 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 State Board of Regents of the State of Utah Series 2012-1.

Fitch has affirmed the following:

State Board of Regents of the State of Utah Series 2012-1
--Class 2012-1 at 'AAAsf'; Outlook Stable.