Fitch Takes Various Rating Actions on Access Group 2004-A

NEW YORK--()--Fitch Ratings has downgraded the class A-3, A-4, and B notes issued by Access Group, Inc. 2004-A Indenture of Trust. At the same time, the class A-2 notes issued from the same trust were affirmed. The Rating Outlook for the class A-3, A-4, and B notes is maintained at Negative while the Rating Outlook on the class A-2 note has been revised to Stable from Negative. Fitch's 'U.S. Private SL ABS Criteria' and 'Global Structured Finance Rating Criteria' were used to review the ratings. A complete list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The downgrade of the class A-3, A-4, and B notes is based on loss coverage multiples that are no longer sufficient to maintain their current ratings, while the affirmation on the class A-2 notes is based on sufficient credit enhancement (CE) to provide loss coverage multiples commensurate with the rating.

The class A-2 floating-rate note has a higher priority of payment than the other bonds, and has to be fully redeemed before any principal is allocated to the other bonds. The structure allows for the class B auction-rate notes to be paid principal before the class A-3 and A-4 auction-rate notes provided that senior and total parity are equal to at least 110.0% and 101.5%, respectively. In its analysis, after class A-2 notes are paid in full, Fitch assumes the trust will pay class B notes first until the senior parity hits 110%.

Fitch has increased its projected lifetime default expectations as a result of current performance in which delinquencies and defaults have increased. Fitch projects remaining defaults, as a percentage of current principal, to range 10%-13% for the 2004-A trust. A 20%-25% recovery rate was used in the analysis based on the updated recovery data provided by Access Group. As of November 2013, the senior and subordinate parities are at 138.07% and 102.01%, respectively.

The Outlook remains Negative for class A-3, A-4, and B notes due to future expected defaults and compressed loss coverage. The Outlook is revised to Stable for the class A-2 notes due to steady performance and the priority of paydown on the note which has increased CE.

The loss coverage multiples were determined by comparing the projected net loss amount to available CE for the rating categories of the trust. Fitch used data provided by Access Group to form a loss timing curve. After giving credit to the seasoning of loans in repayment, Fitch applied the trust's current cumulative gross level to the loss timing curve to derive the expected gross losses over the projected remaining life.

CE consists of excess spread and overcollateralization. Furthermore, the class A notes benefit from additional CE provided by the class B notes. Fitch assumed excess spread to be the lesser of the average historical excess spread and the most recent 12-month average excess spread. That same rate was applied over the remaining life. The collateral securing the notes is 100% private student loans and consists of loans originated by Access Group.

Fitch has downgraded the following ratings:

Access Group, Inc. 2004-A Indenture of Trust:

--Class A-3 to 'BBsf' from 'AAsf'; Outlook Negative;

--Class A-4 to 'BBsf' from 'AAsf'; Outlook Negative'

--Class B-1 to 'Bsf' from 'BBBsf'; Outlook Negative;

--Class B-2 to 'Bsf' from 'BBBsf'; Outlook Negative.

Fitch has affirmed the following ratings:

Access Group, Inc. 2004-A Indenture of Trust:

--Class A-2 at 'AAsf'; Outlook to Stable from Negative.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'U.S. Private Student Loan ABS Criteria', January 2013;

--'Global Structured Finance Rating Criteria', May 2013.

Applicable Criteria and Related Research:

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=698293

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=812140

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Contacts

Fitch Ratings
Primary Analyst
Charlene Davis
+1-212-908-0213
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Tracy Wan
Senior Director
+1-212-908-9171
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Charlene Davis
+1-212-908-0213
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Tracy Wan
Senior Director
+1-212-908-9171
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com