Fitch Ratings affirms the ratings for the senior student loan notes of the Higher Education Funding Trust I under the amended and restated indenture dated March 2005. The Rating Outlook remains Stable. The trust has been producing excess spread, and the parity for the senior notes is at 109.33% as of Sept. 30, 2009 and increasing. A complete list of rating actions follows at the end of this release.
Fitch's Global Structured Finance Rating Criteria were used to review the ratings, and the affirmation is based on the performance of the trust in line with the expectation. The existence of auction-rate securities has not had a significant impact on the trust performance. The Outlook remains Stable because, with the significant buildup of parity for the senior notes, the ratings are expected to remain stable for the next two years. The subordinate student loan notes will be reviewed separately upon the completion of the updated basis risk analysis.
The collateral supporting the Higher Education Funding Trust I 2005 Indenture notes consist entirely of federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP). FFELP loans are guaranteed at least 97% of principal and accrued interest, depending on the loan origination date. The loans are serviced ACS Education Services Inc. and Great Lakes Education Loan Services Inc., which carry a Fitch Seller/Servicer Rating of Proficient Plus.
Fitch affirms the ratings, and the Outlook remains Stable for the following senior classes of the Higher Education Funding Trust I notes, under the amended and restated March 2005 Indenture:
Series 2004-1
--Class A-1 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-2 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-3 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-4 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-5 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-6 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-9 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-10 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-12 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-13 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-14 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-15 notes affirmed at 'AAA/LS1'; Outlook Stable.
Series 2005-1
--Class A-1 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-2 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-3 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-4 notes affirmed at 'AAA/LS1'; Outlook Stable;
--Class A-5 notes affirmed at 'AAA/LS1'; Outlook Stable.
The following applicable criteria report is available on Fitch's web site at 'www.fitchratings.com': 'Global Structured Finance Rating Criteria' dated Sept. 30, 2009.
Additional information is available at 'www.fitchratings.com'.
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.
Contacts:
Fitch Ratings, New York
Jeff Prackup, 212-908-0839
Aoto
Kenmochi, 212-908-0867
or
Media Relations:
Sandro Scenga,
212-908-0278
Email: sandro.scenga@fitchratings.com