OREANDA-NEWS. Fitch Ratings has affirmed at 'AA-sf' the student loan notes issued by the Minnesota Office of Higher Education Supplemental Student Loan Program Revenue Bonds 2010 Series (MOHE 2010). The Rating Outlook for the bonds is Stable. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Collateral Quality: The collateral supporting the trust consists of $45.9 million private student loans originated by MOHE under their Student Education Loan Fund (SELF) V program. Based upon the trust's performance, the projected remaining gross defaults are expected to be in the range of 15 - 20% of the current collateral balance. A recovery rate of 60% was applied, which was determined to be appropriate based on the latest data provided by the issuer.

Credit Enhancement (CE): CE is provided by overcollateralization and excess spread. As of the June 2015 distribution, the report parity was 209.8% (52.3% CE). Since the trust can release excess down to 121% parity, Fitch only gave credit up to the release level. The rating affirmation of the senior notes is due to sufficient loss coverage multiples to maintain its current rating of 'AA-sf'.

Adequate Liquidity Support: Liquidity support is provided by a debt service reserve fund with a required balance equal to the maximum amount of debt service scheduled due for the current or any future fiscal year. The current balance is $5.3 million. The replenishment of the reserve fund to its requirement level is provided by the moral obligation of the State of Minnesota. The General Obligation (GO) bonds of the State of Minnesota were affirmed on July 31, 2015 at 'AA+' with a Stable Outlook.

Servicing Capabilities: Day-to day servicing is provided by Nelnet Servicing LLC, doing business as Firstmark Services.

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 the trust.

DUE DILIGENCE USAGE

Fitch was not provided due diligence information from any third parties relating to MOHE 2010.

Fitch has affirmed the following:

Minnesota Office of Higher Education Supplemental Student Loan Program Revenue Bonds 2010 Series
--$1,090,000 fixed-rate bonds maturing Nov. 1, 2015 at 'AA-'; Outlook Stable;
--$1,925,000 fixed-rate bonds maturing Nov. 1, 2016 at 'AA-'; Outlook Stable;
--$1,120,000 fixed-rate bonds maturing Nov. 1, 2016 at 'AA-'; Outlook Stable;
--$2,315,000 fixed-rate bonds maturing Nov. 1, 2017 at 'AA-'; Outlook Stable;
--$1,940,000 fixed-rate bonds maturing Nov. 1, 2017 at 'AA-'; Outlook Stable;
--$500,000 fixed-rate bonds maturing Nov. 1, 2018 at 'AA-'; Outlook Stable;
--$4,405,000 fixed-rate bonds maturing Nov. 1, 2018 at 'AA--'; Outlook Stable;
--$1,500,000 fixed-rate bonds maturing Nov. 1, 2019 at 'AA-'; Outlook Stable;
--$3,100,000 fixed-rate bonds maturing Nov. 1, 2019 at 'AA-'; Outlook Stable;
--$4,185,000 fixed-rate bonds maturing Nov. 1, 2020 at 'AA-'; Outlook Stable;
--$3,625,000 fixed-rate bonds maturing Nov. 1, 2021 at 'AA-'; Outlook Stable.