OREANDA-NEWS. November 25, 2015. Fitch Ratings has affirmed the following North Carolina State Education Assistance Authority Series 2013-1 notes (NCSEAA 2013-1):

--Class A at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

Adequate Collateral Quality: NCSEAA 2013-1 is collateralized by approximately \\$377.45 million of Federal Family Education Loan Program (FFELP) loans, with the guarantee provided by an eligible guarantor and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest for the FFELP loans. The U.S. is currently rated 'AAA'; Outlook Stable.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance), and excess spread. As of Sept. 30, 2015, total parity is 106%. Cash can be released from the trust when the specified overcollateralization amount is equal to the greater of 110% parity and \\$7.5 million OC. Currently, no cash is being released from the trust as the specified overcollateralization amount has not been reached.

Adequate Liquidity Support: Liquidity support is provided by a reserve fund sized at the greater of 0.25% of the pool balance and 0.10% of the initial pool balance. The reserve fund is sized at \\$943,619 as of Sept. 30, 2015.

Acceptable Servicing Capabilities: Satisfactory Servicing Capabilities: Day-to-day servicing is provided by College Foundation, Inc., and Nelnet Servicing LLC is the backup servicer. Fitch considers the servicers referenced above to be acceptable servicers of FFELP student loans.

Fitch Ratings reviewed NCSEAA 2013-1 using its existing and proposed FFELP criteria, dated Nov. 18, 2015.

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

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