Fitch Ratings has affirmed the senior student loan notes and downgraded the subordinate notes issued by Pennsylvania Higher Education Assistance Agency issued under a master trust indenture, dated August 1, 1997 (PHEAA 1997 Trust Indenture Notes). The Rating Outlook is Stable. A full ratings list is shown below.
The ratings on the senior notes are affirmed based on the sufficient level of credit enhancement, consisting of subordination, overcollateralization, and projected minimum excess spread to cover the applicable risk factor stresses. The ratings on the subordinate notes are downgraded to 'BBB-/LS3' from 'A+/LS3' because the level of hard credit enhancement is only capable of absorbing the applicable risk factor stress level after accounting for the trust's cost structure and its ability to generate excess spread towards the tail end of the transaction.
Fitch has taken the following rating actions:
Pennsylvania Higher Education Assistance Agency 1997 Trust Indenture
Senior Class Notes
--1997 Class A affirmed at 'AAA/LS1'; Outlook
Stable;
--1998-1 Class C affirmed at 'AAA/LS1'; Outlook Stable;
--1998-2
Class D affirmed at 'AAA/LS1'; Outlook Stable;
--2000-1 Class F-1
affirmed at 'AAA/LS1'; Outlook Stable;
--2000-1 Class F-2 affirmed
at 'AAA/LS1'; Outlook Stable;
--2000-1 Class F-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2000-2 Class H affirmed at 'AAA/LS1';
Outlook Stable;
--2000-3 Class J-1 affirmed at 'AAA/LS1'; Outlook
Stable;
--2000-3 Class J-2 affirmed at 'AAA/LS1'; Outlook Stable;
--2000-3
Class J-3 affirmed at 'AAA/LS1'; Outlook Stable;
--2000-3 Class J-4
affirmed at 'AAA/LS1'; Outlook Stable;
--2001 Class L-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2001 Class L-2 affirmed at 'AAA/LS1';
Outlook Stable;
--2002-1 Class N-1 affirmed at 'AAA/LS1'; Outlook
Stable;
--2002-1 Class N-2 affirmed at 'AAA/LS1'; Outlook Stable;
--2002-2
Class P-1 affirmed at 'AAA/LS1'; Outlook Stable;
--2002-2 Class P-2
affirmed at 'AAA/LS1'; Outlook Stable;
--2002-3 Class R-1 affirmed
at 'AAA/LS1'; Outlook Stable;
--2002-3 Class R-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-4 Class T-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-4 Class T-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-4 Class T-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-4 Class T-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-4 Class T-5 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-5 Class V-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-5 Class V-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-5 Class V-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2002-5 Class V-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2003-1 Class W-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2003-1 Class W-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2003-2 Class Y-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2003-2 Class Y-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2003-2 Class Y-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2003-2 Class Y-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-1 Class Z-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-1 Class Z-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-1 Class Z-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-1 Class Z-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-2 Class AA-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-2 Class AA-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-2 Class AA-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-3 Class BB-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-3 Class BB-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-3 Class BB-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2004-3 Class BB-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-1 Class CC-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-1 Class CC-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-1 Class CC-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-2 Class DD-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-2 Class DD-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-3 Class EE-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-3 Class EE-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-3 Class EE-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-3 Class EE-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-4 Class GG-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-4 Class GG-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-4 Class GG-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-4 Class GG-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-4 Class GG-5 affirmed at
'AAA/LS1'; Outlook Stable;
--2005-4 Class GG-6 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-5 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-6 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-7 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-8 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-9 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-1 Class HH-10 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-1 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-2 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-3 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-5 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-6 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-7 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-8 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-9 affirmed at
'AAA/LS1'; Outlook Stable;
--2006-2 Class JJ-10 affirmed at
'AAA/LS1'; Outlook Stable;
--2007 Class LL-1 affirmed at 'AAA/LS1';
Outlook Stable;
--2007 Class LL-2 affirmed at 'AAA/LS1'; Outlook
Stable;
--2007 Class LL-3 affirmed at 'AAA/LS1'; Outlook Stable;
--2007
Class LL-4 affirmed at 'AAA/LS1'; Outlook Stable;
--2007 Class LL-5
affirmed at 'AAA/LS1'; Outlook Stable;
--2007 Class LL-6 affirmed
at 'AAA/LS1'; Outlook Stable;
--2007 Class LL-7 affirmed at
'AAA/LS1'; Outlook Stable;
--2007 Class LL-8 affirmed at 'AAA/LS1';
Outlook Stable;
--2007 Class LL-9 affirmed at 'AAA/LS1'; Outlook
Stable;
--2007 Class LL-10 affirmed at 'AAA/LS1'; Outlook Stable;
--2007
Class MM-1 affirmed at 'AAA/LS1'; Outlook Stable;
--2007 Class MM-2
affirmed at 'AAA/LS1'; Outlook Stable;
--2007 Class MM-3 affirmed
at 'AAA/LS1'; Outlook Stable;
--2007 Class MM-4 affirmed at
'AAA/LS1'; Outlook Stable;
--2007 Class MM-5 affirmed at 'AAA/LS1';
Outlook Stable;
--2007 Class MM-6 affirmed at 'AAA/LS1'; Outlook
Stable;
Pennsylvania Higher Education Assistance Agency 1997 Trust Indenture
Subordinate Class Notes
--1997 Class B downgraded to 'BBB-/LS3'
from 'A+/LS3'; Outlook Stable;
--1998-2 Class E downgraded to
'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2000-1 Class G
downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2000-2
Class I downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2000-3
Class K downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2001
Class M downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2002-1
Class O downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2002-2
Class Q downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2002-3
Class S downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2002-4
Class U downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2003-1
Class X downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2005-3
Class FF downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2006-1
Class II downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2006-2
Class KK downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable;
--2007
Class NN downgraded to 'BBB-/LS3' from 'A+/LS3'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria', dated Aug. 13, 2010;
--'Rating
US Federal Family Education Loan Program Student Loan ABS Criteria',
dated April 11, 2008;
--'Fitch to Gauge Basis Risk in Auction-Rate
U.S. FFELP SLABS Review' dated Sept. 22, 2010.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
Rating
US Federal Family Education Loan Program Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=382306
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Contacts:
Fitch Ratings
Primary Analyst:
Jeffrey Prackup, +1-212-908-0839
Director
Fitch,
Inc.
One State Street Plaza
New York, NY 10004
or
Committee
Chairperson:
Aoto Kenmochi, +1-212-908-0867
Senior Director
or
Media
Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com