NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms the senior education loan backed notes at 'AAAsf' and affirms the subordinate education loan backed note at 'AA+sf' issued by Education Funding Capital Trust-III. The ratings actions are detailed at the end of this press release.
The collateral supporting the notes is comprised of student loans originated under the Federal Family Education Loan Program (FFELP). The Rating Outlook is Negative on the senior notes and Stable on the subordinate notes. The Negative Outlook on the senior notes is tied to the Outlook on the U.S. sovereign rating.
Fitch used its 'Global Structured Finance Rating Criteria' and 'Rating U.S. Federal Family Education Loan Program Student Loan ABS' to review the transaction.
Fitch affirms the ratings on the Education Funding Capital Trust-III senior and subordinate notes based on the sufficient level of credit enhancement to cover the applicable risk factor stresses. Credit enhancement for the senior and subordinate notes consists of overcollateralization and projected minimum excess spread, while the senior notes also benefit from subordination provided by the class B notes.
Fitch has taken the following rating actions:
Education Funding Capital Trust-III
--Class A-3 affirmed at 'AAAsf'; Outlook Negative;
--Class A-4 affirmed at 'AAAsf'; Outlook Negative;
--Class A-5 affirmed at 'AAAsf'; Outlook Negative;
--Class A-6 affirmed at 'AAAsf'; Outlook Negative;
--Class A-7 affirmed at 'AAAsf'; Outlook Negative;
--Class A-8 affirmed at 'AAAsf'; Outlook Negative;
--Class B affirmed at 'AA+sf'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria' dated June 6, 2012;
--'Rating U.S. Federal Family Education Loan Program Student Loan ABS' dated April 3, 2012.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923
Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=675202
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