Fitch Places 217 Tranches of U.S. Student Loan ABS on Rating Watch

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has updated its criteria for FFELP student loan-backed securitizations and placed 192 U.S. student loan ABS tranches on Rating Watch Negative and 25 tranches on Rating Watch Positive.

The criteria update reflects a new analytical tool Fitch has introduced as part of its rating process. The new tool simulates cashflows based on collateral stratifications and deal structure, and incorporates the stresses for various rating categories, as outlined in the criteria.

In taking the actions, Fitch has identified trusts most likely to be affected by the implementation of the new analytical tool. Rating Watch Negative is assigned to deals containing Tax Exempt Auction Rate notes, while Rating Watch Positive is assigned to the subordinate tranches, rated 'BBsf' or below, of LIBOR-indexed trusts with a parity of at least 100%.

Fitch will conduct individual reviews on each affected trust. The magnitude of the upgrades and downgrades is expected to range from three to six notches in severity. Fitch expects to complete its review and resolve the Rating Watch status for all trusts over the next six months.

Please reference the accompanying Rating Action Report for a list of rating actions.

The updated criteria, 'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria', dated May 17, 2013, can be found at www.fitchratings.com.

Individual Representations, Warranties, and Enforcement Mechanisms reports are available for all structured finance transactions initially rated on or after Sept. 26, 2011 at www.fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (April 17, 2012).

Applicable Criteria and Related Research Fitch Places 217 Tranches of U.S. Student Loan ABS on Rating Watch

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709012

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=791461

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