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Fitch Affirms Access Funding 2013-1 LLCFitch Ratings affirms Access Funding 2013-1 LLC's senior notes at 'AAAsf'. The Rating Outlook remains Stable. KEY RATING DRIVERS High Collateral Quality: The trust collateral comprises Federal Family Education Loan Program (FFELP) 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's current U.S. sovereign rating is 'AAA' with a Stable Outlook. Sufficient Credit Enhancement: Credit Enhancement (CE) is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of December 2014, the parity is 104.68%. The trust is in turbo, and no funds will be released until the notes are paid in full. Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at the greater of 0.25% of the principal amount of the notes and 0.10% of the initial principal amount of the notes ($398,785). The reserve account is sized at $1,734,188 as of December 2014. Acceptable Servicing Capabilities: Xerox Education Services, Inc, (XEROX-ES) is responsible for day-to-day servicing of the trust. Fitch believes XEROX-ES to be an acceptable servicer of FFELP student loans. RATING SENSITIVITIES Since the FFELP student loan ABS (News - Alert) relies 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 CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades. Initial Key Rating Drivers and Rating Sensitivities are further described in the presale report titled 'Access Funding 2013-1 LLC Class A (US ABS)', dated Mar. 15, 2013. Fitch has affirmed the following rating: Access Funding 2013-1 LLC: --Class A at 'AAAsf'; Outlook Stable. A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms (RW&Es) to those of typical RW&Es for that asset class is available by accessing the appendix that accompanies the initial presale report. Please refer to 'Access Funding 2013-1 LLC Class A - Appendix', published on Mar. 15, 2013 at www.fitchratings.com.
Additional information is available at ' Applicable Criteria and Related Research: --'Global Structured Finance Rating Criteria' (Aug. 4, 2014); --'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' (June 23, 2014); --'Access Funding 2013-1 LLC Class A (US ABS)' (Mar. 15, 2013); --'Access Funding 2013-1 LLC Class A -- Appendix' (Mar. 15, 2013); --'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (April 17, 2012). Applicable Criteria and Related Research: Global Structured Finance Rating Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389 Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750530 Access Funding 2013-1 LLC Class A (US ABS) http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703370 Access Funding 2013-1 LLC Class A -- Appendix http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703406 Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248 Additional Disclosure Solicitation Status http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=980374 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. |
