Fitch Affirms Panhandle-Plains Student Finance Corp.-2001 Indenture Trust

Fitch Ratings affirms the 'AAAsf' ratings on the class A notes and the 'Asf' ratings on the class B notes issued by Panhandle-Plains (Panhandle) Student Finance Corp. 2001 Indenture Trust. The Negative Outlook is maintained on the class A notes and the Stable Outlook is maintained on the subordinate notes. A full rating list is shown below.

The affirmations of the senior and subordinate notes are based on sufficient level of enhancement in the trust, consisting of any combination of subordination, overcollateralization, and projected minimum excess spread to cover the applicable risk factor stresses.

The trust is comprised of approximately 71% Federal family Education Loan Program (FFELP) loans and 29% private student loans.

The Negative Outlook on the class A notes is tied to the Outlook on the U.S. sovereign rating. It also reflects a compressed multiple to sustain credit loss associated with private student loans at the 'AAA' level. The Stable Outlook on the class B notes is primarily due to the trust's robust credit enhancement to withstand corresponding 'A' credit stress on the private student loans and basis stress on the FFELP loans.

Fitch is aware of the overstated parities in Panhandle's servicing report, as defaulted loans are not subtracted from collateral balance. Fitch made the adjustment in its analysis to reflect reduced overcollateralization.

For the portion of the trust that is backed by private student loans, Fitch conducted a review of the collateral performance that involved the calculation of loss coverage multiples based on the most recent data. A projected net loss amount was compared to available credit enhancement to determine the loss multiples. Fitch used the most recent historical vintage default data from the issuer to project remaining defaults for the trust, taking into consideration seasoning and pool factor. Due to lack of data, a conservative recovery rate of 0% was applied in the analysis. In addition, Fitch projected future excess spread for the trust and incorporated this into its analysis.

Fitch has taken the following rating actions:

Panhandle-Plains Student Finance Corp. 2001 Indenture Trust

--Series 2001 A-1 affirmed at 'AAAsf'; Outlook Negative;

--Series 2001 A-2 affirmed at 'AAAsf'; Outlook Negative;

--Series 2001 B-1 affirmed at 'Asf'; Outlook Stable.

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' dated June 6, 2012;

--'U.S. Private Student Loan ABS Criteria' Jan. 31, 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

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=667570

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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
Primary Analyst
Tracy Wan, [phone]
Senior Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Steven Stubbs, [phone]
Senior Director
or
Media Relations:
Sandro Scenga, [phone]
Email: [e-mail]