Fitch rates the following notes issued by SLM Student
Loan Trust 2005-9:
-- $233,000,000 class A-1 floating-rate student loan-backed notes, 'AAA';
-- $446,000,000 class A-2 floating-rate student loan-backed notes, 'AAA';
-- $240,000,000 class A-3 floating-rate student loan-backed notes, 'AAA';
-- $563,000,000 class A-4 floating-rate student loan-backed notes, 'AAA';
-- $278,962,000 class A-5 floating-rate student loan-backed notes, 'AAA';
-- EUR235,000,000 class A-6 reset-rate student loan-backed notes, 'AAA';
-- EUR500,000,000 class A-7A reset-rate student loan-backed notes, 'AAA';
-- $380,000,000 class A-7B floating-rate student loan-backed notes, 'AAA';
-- $93,381,000 class B floating-rate student loan-backed notes, 'AA+'.
The ratings are based on the quality of the student loan portfolio, the credit enhancement provided, the currency swaps, and the sound legal structure. The ratings reflect the ability of the trust estate to pay note principal at the legal final maturity and timely interest. The ratings do not address the ability of the reset rate noteholders to tender their notes at a remarketing date nor do they address the ability of the indenture trustee to auction the collateral pool prior to the stated maturity of the notes.
Credit enhancement for the trust consists of the reserve account; 25 basis points (bps) of the sum of the current student loan pool balance and the add-on consolidation loan account balance, with a floor of $4,531,764, or 15 bps of the sum of the original pool balance and the add-on consolidation loan account balance; the capitalized interest account; and excess spread. In addition, the class A notes benefit from 3.0% subordination provided by the class B notes.
The transaction has a senior subordinate structure with nine classes of notes. Interest on the class A-1, A-2, A-3, A-4, A-5, A-7B, and class B notes will be indexed to the three-month London Interbank Offered Rate (LIBOR) plus a spread and payable quarterly commencing Jan. 25, 2006. Initially, the class A-6 and A-7A reset-rate notes will be indexed to the three-month EURIBOR plus a spread and payable quarterly commencing Jan. 25, 2006. However, at future remarketing dates the class A-6 and A-7A reset-rate notes can be marketed as notes that pay interest either at a fixed rate or indexed to a floating rate plus a spread, with the first remarketing date for the class A-6 and A-7A notes to occur on Oct. 25, 2012 and Jan. 25, 2016, respectively.
The collateral securing the notes is consolidation loans originated under the Federal Family Education Loan Program (FFELP). The loans are guaranteed to at least 98% of principal and accrued interest by an eligible guarantor(s), depending on loan origination date, and are reinsured by the U.S. Department of Education up to the same amounts. Sallie Mae, Inc. will act as servicer for the loan portfolio.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.
-- $233,000,000 class A-1 floating-rate student loan-backed notes, 'AAA';
-- $446,000,000 class A-2 floating-rate student loan-backed notes, 'AAA';
-- $240,000,000 class A-3 floating-rate student loan-backed notes, 'AAA';
-- $563,000,000 class A-4 floating-rate student loan-backed notes, 'AAA';
-- $278,962,000 class A-5 floating-rate student loan-backed notes, 'AAA';
-- EUR235,000,000 class A-6 reset-rate student loan-backed notes, 'AAA';
-- EUR500,000,000 class A-7A reset-rate student loan-backed notes, 'AAA';
-- $380,000,000 class A-7B floating-rate student loan-backed notes, 'AAA';
-- $93,381,000 class B floating-rate student loan-backed notes, 'AA+'.
The ratings are based on the quality of the student loan portfolio, the credit enhancement provided, the currency swaps, and the sound legal structure. The ratings reflect the ability of the trust estate to pay note principal at the legal final maturity and timely interest. The ratings do not address the ability of the reset rate noteholders to tender their notes at a remarketing date nor do they address the ability of the indenture trustee to auction the collateral pool prior to the stated maturity of the notes.
Credit enhancement for the trust consists of the reserve account; 25 basis points (bps) of the sum of the current student loan pool balance and the add-on consolidation loan account balance, with a floor of $4,531,764, or 15 bps of the sum of the original pool balance and the add-on consolidation loan account balance; the capitalized interest account; and excess spread. In addition, the class A notes benefit from 3.0% subordination provided by the class B notes.
The transaction has a senior subordinate structure with nine classes of notes. Interest on the class A-1, A-2, A-3, A-4, A-5, A-7B, and class B notes will be indexed to the three-month London Interbank Offered Rate (LIBOR) plus a spread and payable quarterly commencing Jan. 25, 2006. Initially, the class A-6 and A-7A reset-rate notes will be indexed to the three-month EURIBOR plus a spread and payable quarterly commencing Jan. 25, 2006. However, at future remarketing dates the class A-6 and A-7A reset-rate notes can be marketed as notes that pay interest either at a fixed rate or indexed to a floating rate plus a spread, with the first remarketing date for the class A-6 and A-7A notes to occur on Oct. 25, 2012 and Jan. 25, 2016, respectively.
The collateral securing the notes is consolidation loans originated under the Federal Family Education Loan Program (FFELP). The loans are guaranteed to at least 98% of principal and accrued interest by an eligible guarantor(s), depending on loan origination date, and are reinsured by the U.S. Department of Education up to the same amounts. Sallie Mae, Inc. will act as servicer for the loan portfolio.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.
© 2005 Business Wire
