OREANDA-NEWS. Fitch Ratings has affirmed the senior and subordinate notes at 'AAAsf' and 'Asf' respectively issued by Edsouth Indenture No. 8, LLC, series 2014-4. The Rating Outlook remains Stable for all notes.

KEY RATING DRIVERS

Collateral Quality: The trust collateral is comprised of 100% rehabilitated 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' with a Stable Outlook.

Sufficient Credit Enhancement: Transaction credit enhancement is provided by overcollateralization and excess spread. In addition, the class A notes benefits from subordination from the class B notes. As of the October 2015 collection period, reported senior and total parity is at 106.03% and 103.49%. Excess cash has not been released as the trust is currently in turbo.

Liquidity support: Liquidity support is provided by a $7 million capitalized interest account and a reserve account currently sized at $1,910,341. The capitalized interest fund will be released on July 2016 as available funds.

Acceptable Servicing Capabilities: Great Lakes Educational Loan Services Inc. (GLESI) will be responsible for servicing approximately 73% of the ESA 2014-4 portfolio, and PHEAA will service the remaining 27%. In Fitch's opinion, both servicers are acceptable servicers of FFELP student loans.

Fitch reviewed Edsouth Indenture No. 8, LLC, series 2014-4 using its existing and proposed FFELP ABS criteria, listed below.

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 buildup of credit enhancement 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 has affirmed the following ratings:

Edsouth Indenture No. 8, LLC, Series 2014-4
--Class A at 'AAAsf'; Outlook Stable;
--Class B at 'Asf'; Outlook Stable.