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Fitch Affirms Multiple Panhandle-Plains Higher Education Authority, Inc. TrustsNEW YORK --(Business Wire)-- Fitch Ratings affirms the senior student loan notes issued by Panhandle-Plains Higher Education Authority, Inc., series 2010-1 and series 2010-2, at 'AAAsf'. The Rating Outlook remains Stable. Key Rating Drivers High Collateral Quality: The trust collateral is comprised of 100% of Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch currently rates the U.S. sovereign at 'AAA' with a Stable Outlook. Sufficient Credit Enhancement Credit enhancement is provided by overcollateralization and excess spread. As of May 2014, senior parity for series 2010-1 and 2010-2 is 113.89% and 114.22%, respectively. Neither trust can release any excess cash until all the notes are fully redeemed. Adequate Liquidity Support Liquidity support is provided by a reserve account in each trust which is determined as the greater of 0.25% of the pool balance or $315,000 for series 2010-1 and $330,000 for series 2010-2. Acceptable Servicing Capabilities Day-to-day servicing is provided by Xerox Education Services, as the subservicer. In Fitch's opinion, it is an acceptable servicer of FFELP student loans. Rating Sensitivities Since FFELP student loan ABS (News - Alert) rely on the U.S. government to reimburse defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA' U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch's published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades. Fitch has taken the following rating actions: Panhandle-Plains Higher Education Authority, Inc., Series 2010-1: --Class A-2 affirmed at 'AAAsf'; Outlook Stable; --Class A-3 affirmed at 'AAAsf'; Outlook Stable; --Class A-4 affirmed at 'AAAsf'; Outlook Stable. Panhandle-Plains Higher Education Authority, Inc., Series 2010-2: --Class A-1 affirmed at 'AAAsf'; Outlook Stable. Additional information is available at 'www.fitchratings.com' Applicable Criteria and Related Research: --'Global Structured Finance Rating Criteria' dated August 2014; --'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' dated June 2014. 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=708795 Global Structured Finance Rating Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389 Additional Disclosure Solicitation Status http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=871394 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 (News - Alert) 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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. |
