NEW YORK--(BUSINESS WIRE)--Today, Fitch Ratings published the fourth quarter 2013 edition of the Student Loan Report Card. In this edition, Fitch highlights 2014 outlook for student loan industry and recent pressure on small student loan servicers due to CFPB oversight and government budget cut.
2014 outlook is as follows:
--'AAAsf' Rated FFELP ABS Remain On Rating Watch Negative: The ratings on these ABS tranches are strongly linked to the U.S. sovereign rating which was placed on Rating Watch Negative on Oct. 15, 2013. The underlying collateral in these transactions are guaranteed against default by the U.S. Department of Education which carries the full faith and credit of the U.S. government. Fitch expects to resolve the Rating Watch Negative on FFELP SLABS by the end of the first-quarter 2014.
--Private SLABS Outlook Stable For Recent Transactions, Negative For Legacy: Fitch's 2014 outlook on the private student loan (PSL) sector is negative for legacy, pre-crisis transactions as elevated unemployment pressures performance. However, significant increases in default are not anticipated. Post-recession securitizations of PSL collateral are expected to perform better due to more stringent underwriting criteria and more robust levels of credit enhancement.
Also, in this edition, Fitch discusses trust performance, rating actions taken and structural features of transactions reviewed during the period.
The full report is available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: The Student Loan Report Card
Applicable Criteria and Related Research: The U.S. Student Loan Report Card