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Fitch to Rate Navient Private Education Loan Trust 2015-A; Presale IssuedFitch Ratings expects to rate Navient Private Education Loan Trust 2015-A as follows: --$223,500,000 class A-1 notes 'AAAsf'; Outlook Stable; --$154,000,000 class A-2A notes 'AAAsf'; Outlook Stable; --$154,000,000 class A-2B notes 'AAAsf'; Outlook Stable; --$75,000,000 class A-3 notes 'AAAsf'; Outlook Stable; --$82,500,000 class B notes 'AAsf'; Outlook Stable. Key Rating Drivers Strong Collateral Quality: The 2015-A trust pool consists of credit-tested private student loans originated under Navient's private student loan programs and underwritten to the respective guidelines. As of the Nov. 2, 2014 statistical cutoff date, the weighted average Fair Isaac Corp. (FICO) score at origination was 731; 87.6% of the loans in the pool were made to four-year schools, and 79.8% of the loans in the pool were co-signed; and none of the loans were more than 60 days past due or involved in a bankruptcy proceeding. Sufficient Credit Enhancement: Transaction cash flows were satisfactory under all stressed scenarios at Fitch's 'AAAsf' and 'AAsf' rating categories. Credit enhancement (CE) is provided by overcollateralization (OC) and excess spread and, for the class A notes, the subordination of class B notes. The initial CE for the senior and subordinate notes is expected to be 31.9% and 22.7%, respectively. Funds cannot be released from the trust unless the OC (excluding the reserve fund) builds up to 30% of the outstanding pool balance or 10% of the initial pool balance, whichever is higher. Adequate Liquidity Support: Liquidity support is provided by a reserve account, which will be fully funded at closing and maintained at 0.25% of the initial pool balance. As of the statistical cutoff date, 78.2% of the loans were required to make certain repayments. Satisfactory Servicing Capabilities: Navient Solutions, Inc., a subsidiary of Navient, will service all of the loans in the 2015-A trust. Fitch has reviewed the servicing operations of Navient Solutions, Inc. and considers it to be an effective private student loan servicer. RATING SENSITIVITY As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels and/or prepayment speeds than the base case. This will result in a decline in available CE and the remaining loss coverage levels available to the notes. Therefore, note ratings may be susceptible to potential negative rating actions, depending on the extent of the decline in the coverage. Rating sensitivity results should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk actors. Rating sensitivity should not be used as an indicator of future rating performance. Key Rating Drivers and Rating Sensitivities are further described in the pre-sale report titled 'Navient Student Loan Trust 2014-8', dated Nov. 13, 2014, available on www.fitchratings.com, or by clicking on the link. Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research: --'Global Structured Finance Rating Criteria' (August 2014); --'Counterparty Criteria for Structured Finance and Covered Bonds' (May 2014); --'U.S. Private Student Loan ABS (News - Alert) Criteria' (January 2014). Applicable Criteria and Related Research: Navient Private Education Loan Trust 2015-A (US ABS) http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=849528 Global Structured Finance Rating Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389 Counterparty Criteria for Structured Finance and Covered Bonds http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158 U.S. Private Student Loan ABS Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956 Additional Disclosure Solicitation Status http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=964735 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. |
