Fitch Ratings affirms all the outstanding student loan notes issued by SLM Private Credit Student Loan Trust 2007-A at their current ratings. The Rating Outlook remains Stable for all the notes. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
Adequate Collateral Quality: The trust is collateralized by approximately $1.38 billion of private student loans for 2007-A trust. The loans were originated by Navient Corp (fka SLM Corp) under the Signature Education Loan Program, LAWLOANS program, MBA Loans program, and MEDLOANS program. The projected remaining defaults are expected to range between 9% - 12% as a percentage of the current pool balance. A recovery rate of 10% was applied, which was determined to be appropriate based on data provided by the issuer.
Sufficient Credit Enhancement: Transaction credit enhancement is sufficient to provide loss coverage for the Class A, B, and C notes at each respective rating category. CE is provided by a combination of overcollateralization (the excess of the trust's asset balance over the bond balance), excess spread, and subordination. The total parity ratio as of the most recent distribution is 103.71%.
Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at approximately $5 million.
Servicing Capabilities: Day-to-day servicing is provided by Navient Solutions Inc., which has demonstrated satisfactory servicing capabilities.
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.
Fitch affirms the following:
SLM Private Credit Student Loan Trust 2007-A:
--Class A-2 at 'AA-sf'; Outlook Stable;
--Class A-3 at 'AA-sf'; Outlook Stable;
--Class A-4 at 'AA-sf'; Outlook Stable;
--Class B at 'BBB+sf'; Outlook Stable;
--Class C-1 at 'BB+sf'; Outlook Stable;
--Class C-2 at 'BB+sf'; 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).
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
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978815
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.
