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Fitch Affirms Senior Notes Issued by South Carolina Student Loan Corp 2013-1Fitch Ratings affirms the senior student loan notes at 'AAAsf' issued by South Carolina Student Loan Corp 2013-1. KEY RATING DRIVERS High Collateral Quality: The trust collateral comprises Federal Family Education Loan Program (FFELP) loans (including approximately 10% of rehabilitated [rehab] loans) with guaranties provided by 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. 'AAA' with a Stable Outlook. Sufficient Credit Enhancement: CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of November 2014, parity is at 103.40%. The parity ratio is expected to continue to rise until the Specified Overcollateralization Amount of the greater of 110% parity or $1,500,000 OC is met. Adequate Liquidity Support: Liquidity support is provided by a Debt Service Reserve Fund sized at 0.25% of the outstanding pool balance, with a floor of $328,867. Acceptable Servicing Capabilities: Day-to-day servicing will be provided by South Carolina Student Loan Corporation, and Nelnet Servicing, LLC (Nelnet) will be the back-up servicer. All servicers have demonstrated adequate servicing capabilities. 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. Initial Key Rating Drivers and Rating Sensitivity are further described in the Presale report published on Feb. 08, 2013. Fitch has taken the following rating actions: South Carolina Student Loan Corp 2013-1: --Class A 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 4, 2014; --'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' dated June 23, 2014. 'South Carolina Student Loan Corporation, 2013-1 Series (US ABS)', dated Feb. 08, 2013. A comparison of the transaction's RW&Es to those of typical RW&Es for student loans is available by accessing the reports and links below: 'South Carolina Student Loan Corporation,2013-1 Series -- Appendix', dated Feb. 08, 2013. 'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended', dated April 17, 2012. Applicable Criteria and Related Research: South Carolina Student Loan Corporation, 2013-1 Series (US ABS) http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701115 South Carolina Student Loan Corporation,2013-1 Series -- Appendix http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701155 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=962575 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. |
