Powered by Business Wire
Search Results for Topix.net

Fitch Affirms Access Group Inc.'s Series 2004-2 Ratings

NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms Access Group Inc.'s 2004-2 Indenture of Trust class A and B notes. The Rating Outlook for the class A-3, A-4 and A-5 notes remains Stable. The Outlook for the class A-2 and B notes remains Negative.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral is comprised of 100% of Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch maintains rating of 'AAA' Outlook Stable on the United States.

Negative Outlook: The Negative Outlook for the class A-2 and B notes is due to a high possibility that the class A-2 notes will not be fully redeemed by its legal final maturity date of Jan. 25, 2016, which would constitute an event of default. When an event of default occurs, it is highly likely that the class B notes will not receive timely interest as the principal for the class A notes must be paid in full prior to the class B notes receiving interest in an event of default.

Sufficient Credit Enhancement: Credit Enhancement is provided by overcollateralization, excess spread and for the class A notes, subordination provided by the class B notes. As of the April 2014 distribution date, total parity is 101.00% and senior parity is 108.95%. Cash is being released from the trust given the trust has reached its release level threshold of 101.00% parity.

Adequate Liquidity Support: Liquidity support is provided by a capitalized interest account where the balance is determined as the greater 0.25% of the outstanding note balance, or (b) $1,151,208 (0.15% of the initial note balance).

Acceptable Servicing Capabilities: ACS, as the servicer, is responsible for the day-to-day servicing of this trust. In Fitch's opinion, ACS is an acceptable servicer of FFELP student loans.

RATING SENSITIVITIES

Since FFELP student loan ABS rely on the U.S. government to reimburse defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA' U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch's published stresses could result in future downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has affirmed the following:

Access Group, Inc. Series 2004-2:

-- Class A-2 at 'B-sf'; Outlook Negative;

-- Class A-3 at 'AAAsf'; Outlook Stable;

-- Class A-4 at 'AAAsf'; Outlook Stable;

-- Class A-5 at 'AAAsf'; Outlook Stable;

-- Class B at 'B-sf'; Outlook Negative.

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

Applicable Criteria and Related Research:

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

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' (June 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750530

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=838377

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.

Contacts

Fitch Ratings
Primary Analyst
Autumn Mascio
Director
+1-212-908-0896
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