NEW YORK--(BUSINESS WIRE)--Fitch Ratings has updated its rating criteria for private student loan asset-backed securities (ABS).
Primary changes include:
--Seasoning credit for pools with less than two years of performance: Credit for seasoning will now be considered for pools with two years or less of repayment performance if the data provided is considered adequate.
--Rating tolerance for surveillance: To avoid unnecessary rating volatility resulting from modest changes in credit performance that are not expected to change the overall credit profile or be sustained, Fitch now employs a rating tolerance in its surveillance analysis. In cases where the loss coverage analysis indicates the credit risk differs from the current rating, the tolerance allows for a one-category buffer. As a result, Fitch typically will not change a rating as long as the analysis indicates the credit risk is within one full rating category of the current rating.
There is no material impact to existing ratings from these changes.
Additional information is available at 'www.fitchratings.com'
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' (July 2015).
U.S. Private Student Loan ABS Criteria
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868836
Applicable Criteria
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952
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.