Fitch Affirms Ratings on KeyCorp Student Loan Trust 1999-B

NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms KeyCorp Student Loan Trust 1999-B senior notes at 'AAAsf' with a Negative Outlook, and affirms the subordinate notes at 'A+sf' with a Stable Outlook.

Fitch used its 'Global Structured Finance Rating Criteria', 'U.S. Private SL ABS Criteria', and 'Rating U.S. Federal Family Education Loan Program Student Loan ABS' to review the transaction. The ratings actions are detailed at the end of this press release.

The affirmation of the senior and subordinate notes are based on sufficient level of enhancement consisting of any combination of subordination, overcollateralization, and projected minimum excess spread to cover the applicable risk factor stresses.

For the portion backed by private student loans, Fitch conducted a review of the collateral performance that involved loss coverage multiples based on the most recent data. A projected net loss amount was compared to available credit enhancement to determine the loss multiples. Fitch used historical vintage loss data provided by the issuer to form a loss timing curve representative of the 1999-B private student loan collateral pool. After giving credit for seasoning of loans in repayment, Fitch applied the current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the remaining life for each trust. A recovery rate was applied, which was determined to be appropriate based on the latest data provided by the issuer. In addition, Fitch assumed excess spread to be the lesser of the current annualized excess spread; the average historical excess spread; and the most recent 12-month average excess spread, and applied that same rate over the remaining life.

This review of KeyCorp Student Loan Trust 1999-B is based on collateral performance data as of May 2012.

Fitch affirms the following notes with a Negative Outlook:

KeyCorp Student Loan Trusts 1999-B

--Class A-2 at 'AAAsf';

--Class M at 'AAAsf'.

Fitch affirms the following notes with a Stable Outlook:

--Class B at 'A+sf'.

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:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'U.S. Private Student Loan ABS Criteria' (Jan. 31, 2012);

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS' (April 3, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=667570

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=675202

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