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). The Rating Outlook has been revised to Stable from Negative for the senior and subordinate notes. The Outlook remains Negative for the junior subordinate note. Fitch's Global Structured Finance Rating Criteria and Private Student Loan Asset-Backed Securities (ABS) Criteria were used to review the transaction. The rating action is detailed at the end of this press release.

The rating affirmation of the senior, subordinate and junior subordinate notes are based on loss coverage multiples commensurate with the notes' assigned ratings and are based on the collateral performance data as of Nov. 26, 2012. 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 and administrator.

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 Outlook for the senior and subordinate notes has been revised to Stable as senior and subordinate parity continues to rise and excess spread is positive. The Outlook remains Negative for the junior subordinate note since losses have increased significantly year over year and total parity is being maintained at 104% due to the trust release level.

The collateral supporting NCT 2007-A notes consists entirely of private student loans, originated under the GATE loan program, which were funded by the Bank of America (rated 'Asf/F1' Outlook Stable by Fitch), and are serviced by The Pennsylvania Higher Education Assistance Agency (PHEAA), which is not rated by Fitch. Although Fitch does not explicitly rate the servicer, Fitch considers its servicing ability to be satisfactory.

Fitch has taken the following rating actions:

National Collegiate Trust 2007-A Student Loan Asset-Backed Notes:

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

--Class B affirmed at 'AAsf'; Outlook revised to Stable from Negative;

--Class C affirmed 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', Jan. 31, 2012;

--'Global Structured Finance Rating Criteria', June 6, 2012.

Applicable Criteria and Related Research:

U.S. Private Student Loan ABS Criteria

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

Global Structured Finance Rating Criteria

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

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Contacts

Fitch Ratings
Primary Analyst
Jenny Ovalle
Associate Director
+1-212-908-0849
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Cynthia Ullrich
Senior Director
+1-212-908-0609
or
Media Relations
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Jenny Ovalle
Associate Director
+1-212-908-0849
Fitch, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Cynthia Ullrich
Senior Director
+1-212-908-0609
or
Media Relations
Sandro Scenga
+1-212-908-0278
sandro.scenga@fitchratings.com