Fitch: No Rating Impact from Navient's Amendment to Extend Six ABS Maturity Dates
OREANDA-NEWS. Navient Inc.'s (Navient) amendment of the transaction agreements for six FFELP securitizations (collectively, the trusts) on Dec. 2, 2015 is not expected to affect ratings assigned to the notes issued by these trusts. The amendment extends the final legal maturity dates of all affected notes to 2083. Fitch currently rates all senior and subordinate notes of the trusts 'AAAsf' and 'AAsf', respectively. The Rating Outlook is Stable.
Fitch views this type of issuer action as an effective mitigant to maturity risk for the six affected trusts listed below. Because the collateral is guaranteed for at least 97% of principal and accrued interest by the U.S. Department of Education (ED), defaults on loans over this time period would function similarly to prepayments, further mitigating maturity risk.
The amended trusts include:
--Navient Student Loan Trust 2014-2
--Navient Student Loan Trust 2014-3
--Navient Student Loan Trust 2014-4
--Navient Student Loan Trust 2014-5
--Navient Student Loan Trust 2014-6
--Navient Student Loan Trust 2014-7
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