NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms the 'AAA' rating on the Access Funding 2010-A LLC (the underlying trust) class A notes and affirms the Credit Suisse ABS Repackaging Trust 2013-A class B notes at 'BBBsf'. The Rating Outlook for both classes remains Stable.
Credit Suisse ABS Repackaging Trust 2013-A is a securitization backed by residual cash released from Access Funding 2010-A LLC. As such, Fitch does not believe the ratings on the class B notes of Credit Suisse ABS Repackaging Trust 2013-A to be higher than 'Asf' or the ratings on the class A notes of Access Funding 2010-A LLC, whichever is lower. However, the rating of the class B notes is not directly linked to the rating of the class A notes.
KEY RATING DRIVERS
Adequate Collateral Quality: Access Funding 2010-A LLC is collateralized by approximately $531.5 million of private student loans as of March 2014. The loans were originated by Access Group. The projected remaining defaults are expected to range between 12%-14%. A recovery rate of 20% was applied which was determined to be appropriate based on data provided by the issuer.
Sufficient Credit Enhancement (CE): Access Funding 2010-A LLC CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. The trust parity is currently 201.97%. Currently cash is being released from Access Funding 2010-A LLC to Credit Suisse ABS Repackaging Trust 2013-A, as the target OC amount of at least 50% of the total assets or $100 million has been met and maintained. Both trusts exhibit performance consistent with Fitch's expectation. Fitch's analysis showed both trusts can withstand stresses corresponding to their current rating levels.
Satisfactory Servicing Capabilities: Day-to-day servicing of the loans backing Access Funding 2010-A LLC is provided by Xerox Education Services. Fitch believes the servicing operations are acceptable at this time.
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.
Initial Key Rating Drivers and Rating Sensitivity for Credit Suisse ABS Repackaging Trust 2013-A further described in the new issue report titled 'Credit Suisse ABS Repackaging Trust 2013-A', dated June 28, 2013.
Fitch will continue to monitor the performance of the trusts.
Fitch has affirmed the following ratings:
Access Funding 2010-A LLC:
--Class A at 'AAAsf'; Outlook Stable.
Credit Suisse ABS Repackaging Trust 2013-A:
--Class B at 'BBBsf'; Outlook Stable.
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms (RW&Es) to those of typical RW&Es for that asset class is available by accessing the appendix that accompanies the initial New Issue Report. Please refer to 'Credit Suisse ABS Repackaging Trust 2013-A: Appendix', published on June 28, 2013 at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (May 30, 2014);
--'U.S. Private Student Loan ABS Criteria' (Jan. 29, 2014);
--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 14, 2014);
--'Representations, Warranties and Enforcement Mechanism in Global Structure Finance Transactions' (April 17, 2012).
--'Credit Suisse ABS Repackaging Trust 2013-A' (June 28, 2013);
--'Credit Suisse ABS Repackaging Trust 2013-A: Appendix' (June 28, 2013).