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Fitch Affirms Iowa Student Loan Liquidity Corporation, Series 2011-1; Outlook StableFitch Ratings affirms the student loan note at 'AAAsf' issued by Iowa Student Loan Liquidity Corporation (ISL (News - Alert)), Series 2011-1. The Rating Outlook remains Stable for the note. 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 at least 97% reinsurance of principal and accrued interest provided by the U.S. Department of Education (ED). The current U.S. sovereign rating is 'AAA' with a Stable Outlook. Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. The total parity ratio (total assets to senior liabilities) is currently 120.15% (16.77% CE). The trust is in turbo and no cash will be released until the note is paid in full. Adequate Liquidity Support: Liquidity support is provided by reserve account which is equal to the greater of 0.25% of the outstanding notes, and 0.15% of the initial pool balance. Acceptable Servicing Capabilities: Day-to-day servicing is provided by Aspire Resources, Inc., a wholly-owned subsidiary and servicing division of ISL, and backup servicing is provided by American Education Services (AES) a servicing division of the Pennsylvania Higher Education Assistance Agency (PHEAA). Fitch believes ISL and AES to be acceptable servicers of FFELP 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 build-up of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades. DUE DILIGENCE USAGE Fitch was not provided due diligence information from any third parties relating to the Iowa Student Loan Liquidity Corporation, Series 2011-1. Fitch has affirmed the following rating: Iowa Student Loan Liquidity Corporation, Series 2011-1 --Class A at 'AAAsf'; Outlook Stale. Additional information is available at www.fitchratings.com. Applicable Criteria
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Rating U.S. Federal Family Education Loan Program Student Loan ABS
Criteria (pub. 23 Jun 2014) Additional Disclosures
Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy 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. View source version on businesswire.com: http://www.businesswire.com/news/home/20150930006755/en/ |
