Fitch Maintains Negative Watch on ALL SLC 2012-I Sr. Notes; Affirms Sub Note

NEW YORK--()--Fitch Ratings maintains the Negative Rating Watch on the senior notes currently rated 'AAAsf' and affirms the subordinate note currently rated 'Asf' issued by Access to Loans for Learning Student Loan Corporation, Series 2012-I (ALL SLC 2012-I). The Outlook on the subordinate note is revised to Positive from Stable.

KEY RATING DRIVERS

High Collateral Quality: The collateral consists of 100% of Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest.

Rating Watch Maintained: On Oct. 16, Fitch placed 766 'AAAsf' rated tranches of U.S. FFELP student loan ABS on Rating Watch Negative following the revision of the U.S. sovereign rating on Oct. 15.

Sufficient Credit Enhancement: CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of October 2013, Class A and B reported parity are at 105.62% and 102.34%, respectively. We expect both parity ratios to continue to rise, as the deal is in turbo payment and no cash can be released to the issuer until all bonds are paid in full.

Adequate Liquidity Support: Liquidity support is provided by a reserve account currently sized at $466,052 as of October 2013. Additionally, the trust has a capitalized interest account of $500,000 that will be released on December 2014.

Acceptable Servicing Capabilities: Sallie Mae Inc., as servicer, is responsible for servicing the trust. Fitch believes Sallie Mae is an acceptable servicer of FFELP student loans.

RATING SENSITIVITIES

Since FFELP student loan ABS rely on the U.S. government to reimburse defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA' U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch's published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has taken the following rating actions:

Access to Loans for Learning Student Loan Corporation, Series 2012-I:

-- Class A note at AAA; Rating Watch Negative Maintained;

-- Class B note at 'Asf'; Outlook revised to Positive from Stable.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated May 24, 2013;

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' dated May 17, 2013.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria - Effective Apr. 7, 2011 to Apr. 3, 2012

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616766

Access to Loans for Learning Student Loan Corporation, Series 2012-I -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696043

Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=812604

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Contacts

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

Sharing

Contacts

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