OREANDA-NEWS. Fitch has affirmed three tranches of notes for SLM Student Loan Trust 2006-6, and maintains the Rating Watch Negative on the A-4 note.

KEY RATING DRIVERS

Maturity Risk: The Rating Watch Negative on the SLM 2006-6 A-4 note is based on the heightened risk of the note missing its legal final maturity of Jan. 25, 2041, which would result in an event of default. In an event of such technical default, Fitch would expect ultimate repayment of full principal and interest after the legal final. The magnitude of the rating action could vary depending on remaining time to maturity, recent payment trends, issuer actions such as loan purchases, or other external factors. Absent any issuer actions, structural or other mitigants, it is possible that 'AAA' ratings could be downgraded one to two rating categories. Fitch expects to complete its review and resolve the Rating Watch status over the next three to six months.

Collateral Quality: The trust is collateral consists of 100% a Federal Family Education Loan Program (FFELP) loan. The credit quality of the trust 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 Stable Outlook on the notes is consistent with Fitch's affirmation of the U.S. sovereign rating at 'AAA'/Outlook Stable.

Credit Enhancement: Credit Enhancement is provided by excess spread and for the class A notes, subordination provided by the class B notes. As of September 2015, the total parity is at its release level of 100.00% and senior parity is 104.71%. The trust is currently releasing excess spread.

Liquidity Support: Liquidity support is provided by a reserve account sized at $2,261,609.

Servicing Capabilities: Navient Solutions LLC (Navient), as servicer, is responsible for servicing the loans in the trust. Fitch believes Navient is an acceptable servicer of FFELP student loans.

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 buildup 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 takes the following actions:

SLM Student Loan Trust 2006-6:
--Class A-2 affirmed at 'AAAsf'; Outlook Stable;
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 'AAAsf'; Rating Watch Negative maintained;
--Class B affirmed at 'Asf'; Outlook Stable.