OREANDA-NEWS. Fitch Ratings has taken the following rating actions on Collegiate Funding Services Education Loan Trust 2005-A & 2005-B:

Collegiate Funding Services Education Loan Trust 2005-A:
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 'AAAsf'; Rating Watch Negative maintained;
--Class B 'A+sf'; Rating Watch Negative maintained.

Collegiate Funding Services Education Loan Trust 2005-B:
--Class A-3 affirmed at 'AAAsf'; Outlook Stable;
--Class A-4 'AAAsf'; Rating Watch Negative maintained;
--Class B affirmed at 'A+sf'; Outlook Stable.

KEY RATING DRIVERS

Maturity Risk: The Rating Watch Negative action is based on the heightened risk of the class A-4 and class B notes of the
2005-A Trust and the class A-4 note of the 2005-B Trust missing their legal final maturities of March 28, 2035, Dec. 28, 2037, and March 28, 2035, respectively, 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 collateral consists of 100% of 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.

Credit Enhancement: Credit enhancement is provided by overcollateralization and excess spread. The class A notes also benefit from subordination from the class B notes. Liquidity support for the notes is provided by a reserve account which is currently at $2.74 million, with a floor of $1,340,886 for the 2005-A Trust, and $2.4 million, with a floor of $1,915,862 for the 2005-B Trust.

Servicing Capabilities: Xerox Education Services, LLC, doing business as ACS Education Services (ACS), is responsible for servicing the trust. Fitch believes ACS to be an acceptable servicer of FFELP student loans.

On Nov. 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.

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.