Fitch Ratings has affirmed the senior and subordinate student loan notes issued by Nelnet Student Loan Trust 2002-1 at 'AAAsf'. The Rating Outlook for the notes, which is tied to the sovereign rating of the U.S. government, remains Negative.
Fitch affirms the ratings on the notes based on the sufficient level of credit enhancement to cover the applicable risk factor stresses. Credit enhancement for the senior and subordinate notes consists of overcollateralization and projected minimum excess spread, while the senior notes also benefit from subordination provided by the class B notes.
Although the defined parity calculations in the trust documents exclude the funds in the reserve account after the pool factor falls below 50%, Fitch does not exclude reserve account funds in the analysis. In addition, Nelnet chose not to optionally purchase the remaining trust student loans on the May 2012 distribution date, so no more excess cash will be released to Nelnet. Therefore, Fitch calculated total parity of 103.44% and gave full credit to it in the analysis since the 100% cash release level no longer applies.
Fitch used its 'Global Structured Finance Rating Criteria' and 'Rating U.S. Federal Family Education Loan Program Student Loan ABS' to review the ratings.
Fitch has affirmed the following ratings:
Nelnet Student Loan Trust 2002-1:
--A-2 at 'AAAsf'; Outlook Negative;
--B at 'AAAsf'; 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' (June 6, 2012);
--'Rating U.S. Federal Family Education Loan Program Student Loan ABS' (April 3, 2012).
Applicable Criteria and Related Research:
Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=675202
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
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