OREANDA-NEWS. September 28, 2015. Fitch Ratings has affirmed the rating on the class A notes issued by South Carolina Student Loan Corp., Series 2010-1 at 'AAAsf' with a Stable Outlook.

KEY RATING DRIVERS
Collateral Quality: The trust collateral is composed of 100% Federal Family Education Loan Program (FFELP) loans. In Fitch's opinion, the credit quality of the trust collateral is higher based on the 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 Stable Outlook on the notes is consistent with Fitch's affirmation of the U.S. sovereign rating at 'AAA', Outlook Stable.

Credit enhancement (CE) is provided by overcollateralization and excess spread. As of July 2015, reported parity is at 107.38%. Excess cash has not been released as the trust is currently in turbo. All remaining funds are used to pay down the notes. Excess funds may be released once all of the notes have been paid in full.

Liquidity Support is provided by a reserve account sized at the greater of 0.25% of the pool balance and 0.10% of the initial pool balance. As of July 2015, reserve account balance is \\$1,427,952.

South Carolina Student Loan Corporation is servicing 100% of the loans. In Fitch's opinion, South Carolina Student Loan Corporation is an acceptable servicer of FFELP student loans.

RATING SENSITIVITIES
Since the FFELP student loan ABS relies 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 buildup of CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

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

Fitch affirms the following:

South Carolina Student Loan Corp., Series 2010-1:
--Class A-2 at 'AAAsf', Outlook Stable;
--Class A-3 at 'AAAsf', Outlook Stable.