OREANDA-NEWS. Fitch Ratings has affirmed at 'AAAsf' the senior loan notes issued by Scholar Funding Trust 2011-A.

KEY RATING DRIVERS

High Collateral Quality: The collateral consists of almost 100% rehab Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. The current U.S. sovereign rating is at 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement: Credit Enhancement is provided by overcollateralization and excess spread. As of the October 2015 report, the total parity is at its release level of 106.38%. Cash is being released from the trust given the trust has reached its release level threshold.

Adequate Liquidity Support: Liquidity support is provided by a debt service reserve fund currently sized at $375,000, the specified reserve account balance.

Acceptable Servicing Capabilities: JP Morgan Chase Bank N.A. is the master servicer and Xerox-ES is the sub-servicer of this trust. Fitch believes both servicers to be acceptable servicers of FFELP student loans.

On November 18, 2015, Fitch released its exposure draft which delineates revisions it plans to make to the "Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria", dated June 23, 2014. Fitch has reviewed this transaction under both the existing and proposed criteria in taking these rating actions.

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, basis risk, and loan extension risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults, basis shock beyond Fitch's published stresses, lower than expected payment speed, and other factors could result in future downgrades. Likewise, a build-up 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 has affirmed the following:

Scholar Funding Trust 2011-A:
--Class A at 'AAAsf'; Outlook Stable.