Fitch Affirms Vermont Student Assistance Corporation, Senior Series 2010A-1 Ratings

NEW YORK--()--Fitch Ratings affirms the ratings of the student loan revenue bonds issued by Vermont Student Assistance Corporation (VSAC) series 2010A-1 at 'A+sf' and maintains the Stable Rating Outlook.

A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Adequate Collateral Quality: The trust is collateralized by approximately $18 million of private student loans as of March 2014. The loans were originated under VSAC's Fixed Rate Private Loan Program. Fitch projected remaining defaults to range between 12%-13% as of the current principal balance based on the current trust performance. A recovery rate of 15% was applied which was determined to be appropriate based on data provided by the issuer.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (the excess of trust's asset balance over bond balance) and excess spread. The total parity ratio is currently 141.10%. The trust is not releasing any excess cash as the 2030 term bond is still outstanding. After Dec. 15, 2021 and the 2030 term bond is paid in full, cash can be released at the release parity threshold of 140%.

Adequate Liquidity Support: Liquidity support is provided by a $303,700 debt service reserve fund and a capitalized interest fund.

Satisfactory Servicing Capabilities: Day-to-day servicing is provided by VSAC. Fitch believes the servicing operations are acceptable at this time.

RATING SENSITIVITIES

As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in CE and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch will continue to monitor the performance of the trust.

Fitch affirms the following ratings:

Vermont Student Assistance Corporation, Senior Series 2010A-1:

--Class A-1 (Dec. 15, 2015) at 'A+sf';

--Class A-1 (Dec. 15, 2016) at 'A+sf';

--Class A-1 (Dec. 15, 2017) at 'A+sf;'

--Class A-1 (Dec. 15, 2018) at 'A+sf';

--Class A-1 (Dec. 15, 2019) at 'A+sf';

--Class A-1 (Dec. 15, 2020) at 'A+sf';

--Class A-1 (Dec. 15, 2021) at 'A+sf';

--Class A-1 (Dec. 15, 2022) at 'A+sf';

--Class A-1 (Dec. 15, 2023) at 'A+sf';

--Class A-1 (Dec. 15, 2024) at 'A+sf';

--Class A-1 (Dec. 15, 2030 disc) at 'A+sf';

--Class A-1 (Dec. 15, 2030 par) at 'A+sf'.

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

Applicable Criteria and Related Research:

--'U.S. Private Student Loan ABS Criteria', January 2014;

--'Global Structured Finance Rating Criteria', May 2014.

Applicable Criteria and Related Research:

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=834515

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Primary Analyst
Autumn Mascio
Director
+1-212-908-0896
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Tracy Wan
Senior Director
+1-212-908-9171
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Autumn Mascio
Director
+1-212-908-0896
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Tracy Wan
Senior Director
+1-212-908-9171
or
Media Relations:
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com