Fitch Ratings affirms the student loan notes at 'Asf' issued by the Vermont Student Assistance Corporation 2012-B (VSAC). The Rating Outlook remains Stable.
A detailed list of rating actions follows at the end of this press release.
Fitch's Global Structured Finance Rating Criteria and Private Student Loan Asset-Backed Securities (ABS) Criteria were used to review the transaction.
Key Rating Drivers
Adequate Collateral Quality:
The trust is collateralized by approximately $197.7 million of VSAC's variable-rate student loans that were originated according to VSAC's underwriting criteria for their Variable Rate Loan Program.
Sufficient Credit Enhancement:
Transaction credit enhancement is sufficient to provide loss coverage multiples corresponding to Fitch's 'Asf' rating category. Loss coverage multiples were determined by comparing the projected net loss amounts to available credit enhancement. Credit enhancement (CE) is provided by overcollateralization (OC; the excess of the trust's asset balance over the bond balance) and excess spread. The parity ratio (total assets to total liabilities) for VSAC 2012-B is 152.59% as of April 30, 2013. Given the limited trust's performance, Fitch applied the initial base case gross default rate of 14.59 % in the analysis. Recovery is assumed to be 10% in our analysis.
Adequate Liquidity Support:
Liquidity support is provided by a reserve account sized at approximately $1.033 million as of April 30, 2013.
Satisfactory Servicing Capabilities:
Day-to-day servicing is provided by VSAC, and Firstmark Services, LLC, a subsidiary of Nelnet, Inc., as the back-up servicer. Both have demonstrated satisfactory servicing capabilities.
Fitch has taken the following rating actions:
Vermont Student Assistance Corporation 2012-B:
--Class A-1 affirmed at 'Asf'; Outlook Stable;
--Class A-2 affirmed at 'Asf'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'
Applicable Criteria and Related Research:
--'U.S. Private Student Loan ABS Criteria' Jan. 29, 2013;
--'Global Structured Finance Rating Criteria' May 24, 2013.
Applicable Criteria and Related Research:
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=6...
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=7...
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=808616
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NEW YORK--(BUSINESS WIRE)--Fitch Ratings 11.19.2013
Fitch affirms Vermont Student Assistance Corp 2012-B, outlook Stable
Submitted by tim
on