Fitch Rates Rhode Island Student Loan Authority 2015 Senior Series

NEW YORK--()--Fitch Ratings assigns ratings to the Rhode Island Student Loan Authority 2015 senior series student revenue bonds as follows:

--$1,400,000 2015A (Serial 2016) 'Asf'; Outlook Stable;

--$1,500,000 2015A (Serial 2017) 'Asf'; Outlook Stable;

--$1,650,000 2015A (Serial 2018) 'Asf'; Outlook Stable;

--$1,750,000 2015A (Serial 2019) 'Asf'; Outlook Stable;

--$2,000,000 2015A (Serial 2020) 'Asf'; Outlook Stable;

--$2,150,000 2015A (Serial 2021) 'Asf'; Outlook Stable;

--$3,040,000 2015A (Serial 2022) 'Asf'; Outlook Stable;

--$3,975,000 2015A (Serial 2023) 'Asf'; Outlook Stable;

--$4,000,000 2015A (Serial 2024) 'Asf'; Outlook Stable;

--$4,000,000 2015A (Serial 2025) 'Asf'; Outlook Stable;

--$3,450,000 2015A (Serial 2026) 'Asf'; Outlook Stable;

--$3,300,000 2015A (Serial 2027) 'Asf'; Outlook Stable;

--$2,050,000 2015A (Serial 2028) 'Asf'; Outlook Stable;

--$2,000,000 2015A (Serial 2029) 'Asf'; Outlook Stable;

--$2,000,000 2015A (Serial 2030) 'Asf'; Outlook Stable;

--$3,010,000 2015A (Serial 2031) 'Asf'; Outlook Stable.

Fitch also affirms the ratings of the existing bonds in the trust indenture dated June 1, 2009. For a detailed list please see below.

KEY RATING DRIVERS

Adequate Collateral Quality: The master trust will be collateralized by existing and new fixed-rate private student loans to be originated from deal closing to Sept. 1, 2016. It is expected that approximately $43 million of student loans will be added to the trust at the end of the acquisition period. All loans have been credit tested, and have been or will be originated under the RISLA Fixed Rate Loan program.

Sufficient Credit Enhancement: Transaction cash flows were satisfactory under all stressed scenarios at Fitch's 'A' rating category. Credit enhancement (CE) is provided by overcollateralization and excess spread. The parity ratio is expected to be 111.50% at closing. Cash will be released to the issuer when the parity reaches 121%, but only until June 1, 2020.

Adequate Liquidity Support: Liquidity support will be provided by a debt service reserve fund sized at 3% of the outstanding bond balance, which will be fully funded at closing with a floor of $2,063,550.

Satisfactory Servicing Capabilities: RISLA will service all of loans in the master trust. Fitch views RISLA as an acceptable servicer.

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 evaluated the sensitivity of the ratings assigned to RISLA 2015-A to increased defaults, reduced recoveries and excess spread over the life of the transaction. Fitch's analysis found that the transaction displays some sensitivity to the above factors, showing a potential downgrade to 'BBB-' and 'B+'. For further discussion of our sensitivity analysis and Fitch's stress analysis please see the presale titled 'Rhode Island Student Loan Authority 2015 Senior Series,' dated March 31, 2015.

Fitch affirms the following ratings:

Rhode Island Student Loan Authority Series 2009

--Serial 2015 at 'Asf'; Outlook Stable;

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Term 2030 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2010A

--Serial 2015 at 'Asf'; Outlook Stable;

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable;

--Serial 2024 at 'Asf'; Outlook Stable;

--Serial 2025 at 'Asf'; Outlook Stable;

--Serial 2026 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2010B

--Serial 2015 at 'Asf'; Outlook Stable;

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable;

--Serial 2024 at 'Asf'; Outlook Stable;

--Serial 2025 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2012A

--Serial 2015 at 'Asf'; Outlook Stable;

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable;

--Serial 2024 at 'Asf'; Outlook Stable;

--Serial 2025 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2013A

--Serial 2015 at 'Asf'; Outlook Stable;

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable;

--Serial 2024 at 'Asf'; Outlook Stable;

--Serial 2025 at 'Asf'; Outlook Stable;

--Serial 2026 at 'Asf'; Outlook Stable;

--Serial 2027 at 'Asf'; Outlook Stable;

--Serial 2028 at 'Asf'; Outlook Stable;

Rhode Island Student Loan Authority Series 2014

--A(2015) at 'Asf'; Outlook Stable;

--A(2016) at 'Asf'; Outlook Stable;

--A(2017) at 'Asf'; Outlook Stable;

--A(2018) at 'Asf'; Outlook Stable;

--A(2019) at 'Asf'; Outlook Stable;

--A(2020) at 'Asf'; Outlook Stable;

--A(2021) at 'Asf'; Outlook Stable;

--A(2022) at 'Asf'; Outlook Stable;

--A(2023) at 'Asf'; Outlook Stable;

--A(2024) at 'Asf'; Outlook Stable;

--A(2025) at 'Asf'; Outlook Stable;

--A(2026) at 'Asf'; Outlook Stable;

--A(2027) at 'Asf'; Outlook Stable;

--A(2028) at 'Asf'; Outlook Stable;

--A(2029) at 'Asf'; Outlook Stable.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (August 2014);

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

--'Representations, Warranties and Enforcement Mechanism in Global Structure Finance Transactions' (October 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

U.S. Private Student Loan ABS Criteria

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

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863817

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983319

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Contacts

Fitch Ratings
Primary Analyst
Emily Lee
Director
+1 212-908-0667
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Victoria Ohorodnyk
Associate Director
+1 212-908-0866
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
Emily Lee
Director
+1 212-908-0667
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Victoria Ohorodnyk
Associate Director
+1 212-908-0866
or
Committee Chairperson
Tracy Wan
Senior Director
+1 212-908-9171
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com