Fitch Takes Various Rating Actions on Wachovia Student Loan Trust 2006-1

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the senior student loan notes and downgraded the subordinate note issued by Wachovia Student Loan Trust, Series 2006-1, issued under the 2006 master trust indenture, dated June 29, 2006. The Rating Outlook is Stable. A full ratings list is shown below.

The ratings on the senior notes are affirmed based on the sufficient level of credit enhancement, consisting of subordination and the projected minimum excess spread, to cover the applicable risk factor stresses. The rating on the subordinate note is downgraded to 'BBB/LS3' due to the trust's relatively high cost structure towards the tail end of the transaction that will put pressure on the trust's ability to generate excess spread (which is the only form of credit enhancement for the subordinate note) and absorb a stressed level of risk factors.

Fitch has taken the following rating actions:

Education Loans Incorporated, Student Wachovia Student Loan Trust Series 2006-1, issued under the 2006 master trust indenture

--Class A-3 affirmed at 'AAAsf/LS1'; Outlook Stable;

--Class A-4 affirmed at 'AAAsf/LS1'; Outlook Stable;

--Class A-5 affirmed at 'AAAsf/LS1'; Outlook Stable;

--Class A-6 affirmed at 'AAAsf/LS1'; Outlook Stable;

--Class B downgraded to 'BBBsf/LS3' from 'AA+sf/LS3'; Outlook Stable.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated Aug. 16, 2010;

--'Rating US Federal Family Education Loan Program Student Loan ABS', dated April 11, 2008;

--'Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria' dated June 29, 2010;

--'Fitch to Gauge Basis Risk in Auction-Rate U.S. FFELP SLABS Review', dated Sept. 22, 2010.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

Rating US Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=382306

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