Fitch Ratings affirms the ratings of the bonds issued by the Rhode Island Student Loan Authority (RISLA) 2009 Trust at 'Asf'. The Outlook remains Stable.
A detailed list of rating actions follows at the end of this press release.
The affirmations are based on a sufficient level of enhancement to cover the applicable risk factor stresses. The collateral consists of 100% private student loans.
KEY RATING DRIVERS
Adequate Collateral Quality: The trust is collateralized by approximately $147.1 million of private student loans as of September 2014. The loans were originated under the Rhode Island Family Education Loan program by RISLA. The projected rating defaults are expected to range between 9%-11% as a percentage of the current pool balance. A recovery rate of 55% was applied which was determined to be appropriate based on data provided by the issuer.
Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. Total parity is currently 110.36% as of September 2014. Cash may be released to the issuer until Dec. 1, 2017 provided that parity exceeds 121%.
Satisfactory Servicing Capabilities: Day-to-day servicing is provided by RISLA. Fitch believes the servicing operations 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.
A comparison of the transaction's Representations, Warranties and Enforcement Mechanisms (RW&E) to those of typical RW&Es for that asset class is available at www.fitchratings.com
Fitch affirms the following ratings:
Rhode Island Student Loan Authority Series 2009
--Serial 2015 at 'Asf'; Outlook Stable;
--Serial 2016 at 'Asf'; Outlook Stable;
--Serial 2017 at 'Asf'; Outlook Stable;
--Serial 2017* at 'Asf'; Outlook Stable;
--Serial 2018 at 'Asf'; Outlook Stable;
--Serial 2019 at 'Asf'; Outlook Stable;
--Serial 2019* at 'Asf'; Outlook Stable;
--Serial 2020 at 'Asf'; Outlook Stable;
--Serial 2021 at 'Asf'; Outlook Stable;
--Serial 2022 at 'Asf'; Outlook Stable;
--Term 2030 at 'Asf'; Outlook Stable.
Rhode Island Student Loan Authority Series 2010A
--Serial 2015 at 'Asf'; Outlook Stable;
--Serial 2016 at 'Asf'; Outlook Stable;
--Serial 2017 at 'Asf'; Outlook Stable;
--Serial 2018 at 'Asf'; Outlook Stable;
--Serial 2019 at 'Asf'; Outlook Stable;
--Serial 2020 at 'Asf'; Outlook Stable;
--Serial 2021 at 'Asf'; Outlook Stable;
--Serial 2022 at 'Asf'; Outlook Stable;
--Serial 2023 at 'Asf'; Outlook Stable;
--Serial 2024 at 'Asf'; Outlook Stable;
--Serial 2025 at 'Asf'; Outlook Stable;
--Serial 2026 at 'Asf'; Outlook Stable.
Rhode Island Student Loan Authority Series 2010B
--Serial 2015 at 'Asf'; Outlook Stable;
--Serial 2016 at 'Asf'; Outlook Stable;
--Serial 2017 at 'Asf'; Outlook Stable;
--Serial 2018 at 'Asf'; Outlook Stable;
--Serial 2019 at 'Asf'; Outlook Stable;
--Serial 2020 at 'Asf'; Outlook Stable;
--Serial 2021 at 'Asf'; Outlook Stable;
--Serial 2022 at 'Asf'; Outlook Stable;
--Serial 2023 at 'Asf'; Outlook Stable;
--Serial 2024 at 'Asf'; Outlook Stable;
--Serial 2025 at 'Asf'; Outlook Stable.
Rhode Island Student Loan Authority Series 2012A
--Serial 2015 at 'Asf'; Outlook Stable;
--Serial 2016 at 'Asf'; Outlook Stable;
--Serial 2017 at 'Asf'; Outlook Stable;
--Serial 2018 at 'Asf'; Outlook Stable;
--Serial 2019 at 'Asf'; Outlook Stable;
--Serial 2020 at 'Asf'; Outlook Stable;
--Serial 2021 at 'Asf'; Outlook Stable;
--Serial 2022 at 'Asf'; Outlook Stable;
--Serial 2023 at 'Asf'; Outlook Stable;
--Serial 2024 at 'Asf'; Outlook Stable;
--Serial 2025 at 'Asf'; Outlook Stable.
Rhode Island Student Loan Authority Series 2013A
--Serial 2015 at 'Asf'; Outlook Stable;
--Serial 2016 at 'Asf'; Outlook Stable;
--Serial 2017 at 'Asf'; Outlook Stable;
--Serial 2018 at 'Asf'; Outlook Stable;
--Serial 2019 at 'Asf'; Outlook Stable;
--Serial 2020 at 'Asf'; Outlook Stable;
--Serial 2021 at 'Asf'; Outlook Stable;
--Serial 2022 at 'Asf'; Outlook Stable;
--Serial 2023 at 'Asf'; Outlook Stable;
--Serial 2024 at 'Asf'; Outlook Stable;
--Serial 2025 at 'Asf'; Outlook Stable;
--Serial 2026 at 'Asf'; Outlook Stable;
--Serial 2027 at 'Asf'; Outlook Stable;
--Serial 2028 at 'Asf'; Outlook Stable;
Rhode Island Student Loan Authority Series 2014
--A(2015) at 'Asf'; Outlook Stable;
--A(2016) at 'Asf'; Outlook Stable;
--A(2017) at 'Asf'; Outlook Stable;
--A(2018) at 'Asf'; Outlook Stable;
--A(2019) at 'Asf'; Outlook Stable;
--A(2020) at 'Asf'; Outlook Stable;
--A(2021) at 'Asf'; Outlook Stable;
--A(2022) at 'Asf'; Outlook Stable;
--A(2023) at 'Asf'; Outlook Stable;
--A(2024) at 'Asf'; Outlook Stable;
--A(2025) at 'Asf'; Outlook Stable;
--A(2026) at 'Asf'; Outlook Stable;
--A(2027) at 'Asf'; Outlook Stable;
--A(2028) at 'Asf'; Outlook Stable;
--A(2029) at 'Asf'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'U.S. Private Student Loan ABS Criteria' (Jan. 29, 2014);
--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);
--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (Oct. 31, 2014);
--'Rhode Island Student Loan Authority 2014 Senior Series A--Appendix' (April 1, 2014).
Applicable Criteria and Related Research:
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248
Rhode Island Student Loan Authority 2014 Senior Series A -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=739055
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978947
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