Fitch Affirms Ratings on National Collegiate Trust 2007-A Notes

NEW YORK--()--Fitch Ratings has affirmed the ratings on the senior, subordinate and junior subordinate notes for National Collegiate Trust (NCT) 2007-A student loan asset-backed notes issued by First Marblehead Corporation (FMD). Fitch's Global Structured Finance Rating Criteria and Private Student Loan Asset-Backed Securities (ABS) Criteria were used to review the transaction. The Rating Outlook is Negative. The rating actions are detailed at the end of this press release.

The rating affirmation of the senior, subordinate and junior subordinate notes is based on loss coverage multiples commensurate with the notes' assigned ratings and are based on the collateral performance data as of Nov. 28, 2011. Loss coverage multiples were determined by comparing projected net loss amounts to available credit enhancement. Fitch used historical vintage loss data provided by First Marblehead Corporation to form a loss timing curve representative of the series 2007-A collateral pool. After giving credit for seasoning of loans in repayment, Fitch applied the trust's current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the projected remaining life. Credit was given to the Bank of America guaranty by applying a conservative reduction to the default projection. A recovery rate was applied, which was determined to be appropriate based on the latest data provided by the issuer.

Credit enhancement consists of excess spread, overcollateralization and subordination for the senior notes. Fitch assumed excess spread to be the lesser of the average historical excess spread (earning on the assets minus interest payments to bondholders and fees) and the most recent 12-month average excess spread, and applied that same rate over the stressed projection of remaining life.

The calculated multiples for the notes are sufficient to maintain the current ratings on the senior, subordinate and junior subordinate notes. The Negative Outlook is maintained because of Fitch's negative view of the private student loan sector in general.

The collateral supporting the National Collegiate Trust 2007-A notes consists entirely of private student loans originated under First Marblehead Corporation's Guaranteed Access to Education (GATE) program and are serviced by The Pennsylvania Higher Education Assistance Agency (PHEAA), both of which are not rated by Fitch. Although Fitch does not explicitly rate the above-referenced servicer, Fitch considers its servicing ability to be satisfactory.

Fitch affirms the senior, subordinate and junior subordinate notes, and maintains a Negative Outlook on the following National Collegiate Trust Series 2007-A student loan asset-backed notes:

-- Class A at 'AAAsf'; Outlook Negative;

-- Class B at 'AAsf'; Outlook Negative;

-- Class C at 'Asf'; Outlook Negative.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'U.S. Private Student Loan ABS Criteria' Jul. 19, 2011;

--'Global Structured Finance Rating Criteria' Aug. 4, 2011.

Applicable Criteria and Related Research:

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=634449

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

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Contacts

Fitch Ratings
Primary Analyst
Jeffrey Prackup, +1-212-908-0839
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Tracy Wan, +1-212-908-9171
Senior Director
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Jeffrey Prackup, +1-212-908-0839
Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Tracy Wan, +1-212-908-9171
Senior Director
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com