Fitch Affirms Ratings on SLC Private Student Loan Trust 2010-A

NEW YORK--()--Fitch Ratings has affirmed the rating on the Student Loan Corporation (SLC) Private Student Loan Trust 2010-A senior class A note issued by the Student Loan Corporation. The Rating Outlook remains Stable. Fitch's 'Global Structured Finance Rating Criteria' and 'Private Student Loan Asset-Backed Securities (ABS) Criteria' were used to review the transaction. The rating action is detailed at the end of this press release.

Adequate Collateral Quality: The trust collateral consists of private student loans originated under Citibank's CitiAssist private student loan program and underwritten to specific guidelines. SLC and SLC Private Student Loan Trust 2010-A were subsequently purchased by Discover Bank. The program offered CitiAssist undergraduate and graduate, law and bar exam, proprietary, health professions, K-12 and residency, relocation, and review loans. The trust's current cumulative gross loss is approximately 4.8% of the student loan repayment balance, and Fitch projects the remaining defaults to range between 11% and 13% of the remaining student loan balance. A recovery rate of 25% was used in Fitch's analysis based upon information provided by SLC.

Sufficient Credit Enhancement: The transaction's credit enhancement is sufficient for the bonds to withstand the stressed scenarios at Fitch's 'AAA' rating category. Credit enhancement is provided by overcollateralization (OC); the excess of the trust's asset balance over the bond balance) and excess spread. As of October 15, 2014, the parity ratio (total assets over total liabilities) has been increasing and is currently 248.43%, as the trust's excess spread continues to increase. Currently, the trust's OC amount is approximately 59.75% of the adjusted pool balance, which is below the 60% cash release level.

Sufficient Liquidity Support: Liquidity support will be provided by a debt service reserve fund which is equal to 0.25% of the outstanding pool balance.

Satisfactory Servicing Capabilities: SLC / Discover Bank, rated 'BBB+/F2' Stable, is the master servicer and administrator of the trust. The subservicer, Discover Products Inc. (DPI), a wholly owned subsidiary of Discover Bank, services the private student loan portfolio on a day-to-day basis. DPI/Discover Bank is rated 'BBB+/F2' Outlook Stable by Fitch. Fitch believes DPI provides adequate servicing for private student loans.

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.

Given the most recent surveillance report provided October 15, 2014, the projected lifetime defaults and increase in excess spread for SLC 2010-A has caused the loss coverage multiple to increase which supports the current ratings and Stable Outlook on the notes.

Fitch affirms the rating and maintains a Stable Outlook on the following SLC Private Student Loan Trust 2010-A note:

--Senior class A at 'AAAsf'; Outlook Stable.

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 - Effective from 20 May 2014 to 4 August 2014

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=925975

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Contacts

Fitch Ratings
Primary Analyst
Jeffrey Prackup
Director
+1 212-908-0839
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson
Tracy Wan
Senior Director
+1 212-9089171
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Jeffrey Prackup
Director
+1 212-908-0839
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson
Tracy Wan
Senior Director
+1 212-9089171
or
Media Relations
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com