Fitch Takes Various Actions on Three Nelnet Student Loan Trusts

NEW YORK--()--Fitch Ratings has taken various rating actions on the senior and subordinate student loan notes issued by Nelnet Student Loan Trust 2004-3, 2005-2, and 2005-3. All outstanding senior notes of the three trusts have been affirmed at 'AAAsf,' and all outstanding subordinate notes of the three trusts have been upgraded to 'AA-sf.' The Rating Outlooks for the 'AAAsf' notes, which are tied to the sovereign rating of the U.S. government, remain Negative. The Rating Outlooks for the subordinate notes have been revised to Positive from Stable.

Fitch affirms the ratings on the senior notes based on the sufficient level of credit enhancement to cover the applicable risk factor stresses. Credit enhancement for the senior notes consists of overcollateralization, projected minimum excess spread, and subordination provided by the class B notes.

The subordinate notes of the three trusts are upgraded due to the fact that all three trusts have now dropped below a 40% pool factor, resulting in the Reserve Account being excluded from Nelnet's parity calculation. This has allowed overcollateralization to build to a sufficient level to cover the applicable risk factor stresses. The Outlooks for the subordinate notes have been revised to Positive from Stable because overcollateralization will continue to build as the notes pay down.

Fitch used its 'Global Structured Finance Rating Criteria' and 'Rating U.S. Federal Family Education Loan Program Student Loan ABS' to review the ratings.

Fitch has taken the following rating actions:

Nelnet Student Loan Trust 2004-3:

--A-4 affirmed at 'AAAsf'; Outlook Negative;

--A-5 affirmed at 'AAAsf'; Outlook Negative;

--B upgraded to 'AA-sf' from 'Asf'; Outlook revised to Positive from Stable.

Nelnet Student Loan Trust 2005-2:

--A-4 affirmed at 'AAAsf'; Outlook Negative;

--A-5 affirmed at 'AAAsf'; Outlook Negative;

--B upgraded to 'AA-sf' from 'BBBsf'; Outlook revised to Positive from Stable.

Nelnet Student Loan Trust 2005-3:

--A-4 affirmed at 'AAAsf'; Outlook Negative;

--A-5 affirmed at 'AAAsf'; Outlook Negative;

--B upgraded to 'AA-sf' from 'BBBsf'; Outlook revised to Positive 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' (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

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Primary Analyst
Harry Kohl, +1-212-908-0837
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Steven Stubbs, +1-212-908-0676
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Sharing

Contacts

Fitch Ratings
Primary Analyst
Harry Kohl, +1-212-908-0837
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Steven Stubbs, +1-212-908-0676
Senior Director
or
Media Relations, New York
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com