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Fitch Affirms Brazos Higher Education Authority Inc., Series 2011-1; Outlook StableFitch Ratings has affirmed the following Brazos Higher Education Authority, Inc. Series 2011-1 notes (BHEA 2011-1): --Class A-2 at 'AAAsf'; Outlook Stable; --Class A-3 at 'AAAsf'; Outlook Stable. KEY RATING DRIVERS Adequate Collateral Quality: BHEA 2011-1 is collateralized by approximately $808.17 million of 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 for the FFELP loans. The U.S. is currently rated '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. As of July 31, 2015, senior parity is 112.12%. The trust is in turbo, and no cash can be released until all notes have been paid in full. Adequate Liquidity Support: Liquidity support is provided by a reserve fund sized at the greater of 0.25% of the pool balance and $2,427,000. The reserve fund is sized at $2,427,000 as of July 31, 2015. Acceptable Servicing Capabilities: Satisfactory Servicing Capabilities: Day-to-day servicing is provided by Xerox Education Services LLC, Great Lakes Educational Loan Services, Inc. (GLELSI), AES, a loan servicing division of the Pennsylvania Higher Education Assistance Agency, Nelnet Servicing LLC, and Navient Solutions Inc. Fitch considers all servicers are acceptable servicers of FFELP student loans. RATING SENSITIVITIES 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 than the base case. This will result in a decline in CE and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch will continue to monitor the performance of the trust. DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating action. 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 (News - Alert)
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/20151117006880/en/ |
