Fitch Affirms Iowa Student Loan Liquidity Corporation, Series 2011-1; Outlook Revised to Negative

NEW YORK--()--Fitch Ratings affirms the senior student loan note at 'AAAsf' issued by Iowa Student Loan Liquidity Corporation, Series 2011-1 (the issuer). The Rating Outlook on the senior note, which is tied to the sovereign rating of the U.S. government, is revised to Negative from Stable.

The rating on the senior note is affirmed based on the sufficient level of credit enhancement consisting of overcollateralization and projected minimum excess spread to cover the applicable risk factor stresses.

On Dec. 2, 2012, Fitch issued a press release 'Fitch Revises Outlooks to Negative for Various U.S. FFELP Student Loan Trusts,' which detailed that Fitch was assigning a Negative Outlook to all FFELP bond tranches with a maximum rating of 'AAA' in accordance with the current rating on the U.S. government. Due to the guarantee provided by the U.S. government on the student loan collateral, the ratings on these ABS tranches are directly linked to the U.S. sovereign rating.

Fitch has taken the following rating actions:

Iowa Student Loan Liquidity Corporation, Series 2011-:

--Class A affirmed at 'AAAsf'; Outlook revised to Negative from Stable.

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);

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

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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Contacts

Fitch Ratings
Primary Analyst
Kinga Gorniak, +1 212-908-0792
Associate Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
Kinga.gorniak@fitchratings.com
or
Committee Chairperson
Steven Stubbs, +1 212-908-0676
Senior Director
Steven.stubbs@fitchratings.com
or
Media Relations:
Sandro Scenga, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Kinga Gorniak, +1 212-908-0792
Associate Director
Fitch, Inc.
One State Street Plaza
New York, NY 10004
Kinga.gorniak@fitchratings.com
or
Committee Chairperson
Steven Stubbs, +1 212-908-0676
Senior Director
Steven.stubbs@fitchratings.com
or
Media Relations:
Sandro Scenga, +1 212-908-0278
Email: sandro.scenga@fitchratings.com