Fitch Takes Various Rating Actions on SLM Private Credit Student Loan Trusts

Fitch Ratings affirms 16 classes and downgrades three classes from four SLM Private Credit Student Loan Trusts. Fitch affirms the ratings on all notes in the SLM Private Credit Student Loan Trust 2002-A and the senior and subordinate notes in the SLM Private Credit Student Loan Trust 2003-A, 2003-B and 2003-C. The affirmations are based on sufficient loss coverage multiples commensurate with the ratings. Fitch has downgraded the ratings on the junior subordinate notes in the 2003-A, 2003-B, and 2003-C transactions by two to three notches. The ratings actions are detailed at the end of this press release.

These transactions benefit from basis risk swaps between three month LIBOR and US Prime Rate. On June 10, 2011, Fitch withdrew ratings on Merrill Lynch Derivative Products AG (MLDP), the swap counterparty for these transactions. On Jan 18, 2012 the swap counterparty executed credit support annexes and posted collateral which made each swap agreement consistent with Fitch's counterparty criteria.

The ratings of the notes have not previously been reduced as a result of the withdrawal of the MLDP rating by Fitch. The downgrades are not based on the implementation of the credit support annexes and the subsequent posting of collateral. The downgrades are based solely on the performance within each individual trust and reflect further deterioration of private student loan collateral. Losses are accumulating at a faster pace than anticipated and have resulted in erosion of total parity over the last year. The loss multiples calculated were indicative of lower ratings for the downgraded junior subordinate notes.

As of December 2011, senior parity for the 2002-A, 2003-A, 2003-B and 2003-C are at 118.39%, 118.34%, 117.44% and 116.66%, respectively. The subordinate parity ranges between 108% and 112%. The junior subordinate parity for the aforementioned trusts is at 104.92%, 100.11%, 99.09%, and 98.57%, respectively.

The Rating Outlook for the 2002-A trust's senior and subordinate notes remains Stable. The Outlook for the junior subordinate note is Positive to account for the increase in parity and overall positive performance trend. The Outlook for the remaining trusts is Negative due to declining parities, and is in-line with Fitch's view of the overall private student loan sector in general. The 'Global SF Criteria', 'U.S. Private SL ABS Criteria', and 'Counterparty Criteria for Structured Finance Transactions' were used to review the transaction.

Loss multiples based on the latest performance data were derived to determine the appropriate ratings. The projected net loss amounts were compared to available credit enhancement to determine the loss multiples for each rating category. Fitch used data provided by Sallie Mae to form a loss timing curve representative of each pool depending on loan composition. After giving credit for seasoning of loans in repayment, Fitch applied the trust's current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the projected remaining life. A recovery rate of 15% was applied, which the level was assumed during the transaction's initial review. Credit enhancement consists of a combination of excess spread, overcollateralization, and subordination.

The collateral securing the notes are private student loans originated to undergraduate, graduate, law, Med and MBA students under the Signature and EXCEL programs. The private student loans are intended to assist individuals in financing their undergraduate or graduate education beyond FFELP limits.

Fitch affirms and downgrades the following ratings as indicated:

SLM Private Credit Student Loan Trust 2002-A:

--Class A-2 affirmed at 'AAAsf'; Outlook Stable;

--Class B affirmed at 'AAAsf'; Outlook Stable;

--Class C affirmed at 'AAsf'; Outlook Positive.

SLM Private Credit Student Loan Trust 2003-A:

--Class A-2 affirmed at 'AAAsf'; Outlook Negative;

--Class A-3 affirmed at 'AAAsf'; Outlook Negative;

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class B affirmed at 'AAsf'; Outlook Negative;

--Class C downgraded to 'BBB-sf' from 'A-sf'; Outlook Negative.

SLM Private Credit Student Loan Trust 2003-B:

--Class A-2 affirmed at 'AAAsf'; Outlook Negative;

--Class A-3 affirmed at 'AAAsf'; Outlook Negative;

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class B affirmed at 'AAsf'; Outlook Negative;

--Class C downgraded to 'BBB-sf' from 'A-sf'; Outlook Negative.

SLM Private Credit Student Loan Trust 2003-C:

--Class A-2 affirmed at 'AAAsf'; Outlook Negative;

--Class A-3 affirmed at 'AAAsf'; Outlook Negative;

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class A-5 affirmed at 'AAAsf'; Outlook Negative;

--Class B affirmed at 'AAsf'; Outlook Negative;

--Class C downgraded to 'BBB-sf' from 'BBB+sf'; Outlook Negative.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);

--'U.S. Private Student Loan ABS Criteria'(July 19, 2011);

--'Counterparty Criteria for Structured Finance Transactions' (March 14, 2011).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=634449

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=605425

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