OREANDA-NEWS. March 28, 2016. Fitch Ratings has taken the following rating actions on the notes issued by PARTS Private Student Loan Trust Series 2007-CT1:

--Class A affirmed at 'Asf', Outlook Stable;
--Class B downgraded to 'CCsf' from 'CCCsf', RE 50%;
--Class C affirmed at 'Csf', RE 0%.

KEY RATING DRIVERS

Collateral Quality: The trust is collateralized by approximately \\$43.5 million of private student loans as of November 2015 that were originated according to either TERI or LEARN underwriting guidelines. The projected remaining defaults are expected to range between 33%-36%. A recovery rate of 0% was applied as the data provided indicates a minimal recovery rate.

Credit Enhancement (CE): CE is provided by excess spread. Senior notes, benefiting from subordination provided by junior bonds, are seeing higher parity, while subordinate notes and junior subordinates continue to be under-collateralized. As of November 2015, senior, subordinate and junior subordinate parity ratios were 164.91% (CE 39.36%), 98.50% and 84.00% respectively. The Stable Outlook for the senior notes reflects improving parity and sufficient credit enhancement to absorb expected losses. The Recovery Estimate (RE) for the class B notes is approximately RE 50% and for the class C notes is RE 0%.

Given the most recent projected lifetime defaults and decrease in excess spread, PARTS 2007-CT1 has experienced a decrease in the loss coverage multiples for the subordinate and junior subordinate notes. The loss coverage multiples have decreased for subordinate class B notes such that these notes have been downgraded to 'CCsf'.

Liquidity Support: Liquidity support is provided by a reserve fund sized at \\$1,000,000.

Servicing Capabilities: Day-to-day servicing is provided by American Education Services (AES), a wholly-owned subsidiary of Pennsylvania Higher Education Assistance Agency (PHEAA). Fitch believes the servicing operations of AES are acceptable at this time.

RATING SENSITIVITIES
As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in CE and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch will continue to monitor the performance of the trust.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.