Fitch Affirms VSAC 2012A, Series 2012A & 2013A; Outlook Stable

NEW YORK--()--Fitch Ratings affirms the Vermont Student Assistance Corp 2012A Master Indenture series 2012A and 2013A senior notes at 'Asf' with a Stable Outlook. A full list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Adequate Collateral Quality: The trust is collateralized by approximately $34.5 million of fixed-rate private student loans. The loans were originated according to the underwriting criteria for the VSAC Fixed-Rate Private Loan Program. Fitch's current lifetime gross default projection is 13% - 15%, with a 15% recovery assumption.

Sufficient Credit Enhancement: Credit enhancement is provided by overcollateralization and excess spread. Total parity for the class A-1 notes is currently 130.03%. The trust can release cash given the parity threshold of 128% is maintained.

Adequate Liquidity Support: Liquidity support for the notes is provided by a reserve account which is currently at $629,598, as well as a capitalized interest fund.

Acceptable 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.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

VSAC, 2012A Indenture, Series 2012A

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

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

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

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

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

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

--Serial 2021LO 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 2029 at 'Asf'; Outlook Stable;

--Serial 2031 at 'Asf'; Outlook Stable;

--Term 2032 at 'Asf'; Outlook Stable.

VSAC, 2012A Indenture, Series 2013A

--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 2030 at 'Asf'; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 31 Mar 2015)

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

U.S. Private Student Loan ABS Criteria (pub. 29 Jan 2014)

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

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985679

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Harry Kohl
Associate Director
+1-212-908-0837
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
Harry Kohl
Associate Director
+1-212-908-0837
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