Fitch Takes Various Actions on Access to Loans for Learning Student Loan Corp - 1998 Master Trust IV

NEW YORK--()--Fitch Ratings has upgraded the Access to Loans for Learning Student Loan Corp - 1998 Master Trust IV (ALL SLC 1998) senior note (IV-A-13) to 'BBBsf' from 'B-sf'; Outlook Positive. Fitch has also affirmed the remaining senior notes (IV-A) and senior subordinate notes (IV-C) at 'B-sf' and revised the Outlook to Stable from Negative.

The upgrade on the senior (IV-A13) note is due to the expected payoff of the LIBOR floating notes before its legal maturity date. The structure prioritizes principal payment of LIBOR floating notes based on a targeted amortization schedule over principal payment of other senior auction rate securities.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral is comprised of 100% of Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest.

Sufficient Credit Enhancement: CE is provided by overcollateralization and excess spread. As of June 2014, reported senior is 107.07%, senior-subordinate is 102.57% and total parity is 100.75%, respectively. Cash can be released from the trust provided the senior parity is at least 110%; senior-subordinate parity is at least 106% and total parity is at least 102%.

Adequate Liquidity Support: Liquidity support is provided by a reserve account which is determined as the greater of 0.75% of the principal amount of bonds outstanding or $1,000,000.

Acceptable Servicing Capabilities: Day to day servicing is provided by Sallie Mae Servicing, Great Lakes Educational Services Inc. and ACS. In Fitch's opinion, all servicer are acceptable servicers of 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, interest and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults, interest 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 interest rate and basis factor conditions could lead to future upgrades.

Fitch has taken the following rating actions:

Access to Loans for Learning Student Loan Corp - 1998 Master Trust IV Senior Class Notes

--Series 2003-1 class A-8 affirmed at 'B-sf'; Outlook to Stable from Negative;

--Series 2003-1 class A-10 affirmed at 'B-sf'; Outlook to Stable from Negative;

--Series 2003-2 class A-11 affirmed at 'B-sf'; Outlook to Stable from Negative;

--Series 2004 class A-13 upgraded to 'BBBsf' from 'B-sf'; Outlook to Positive from Negative;

--Series 2007 class A-14 affirmed at 'B-sf'; Outlook to Stable from Negative;

--Series 2007 class A-15 affirmed at 'B-sf'; Outlook to Stable from Negative;

--Series 2007 class A-16 affirmed at 'B-sf'; Outlook to Stable from Negative;

--Series 2007 class A-17 affirmed at 'B-sf'; Outlook to Stable from Negative;

--Series 2007 class A-18 affirmed at 'B-sf'; Outlook to Stable from Negative.

Access to Loans for Learning Student Loan Corp - 1998 Master Trust IV Senior Subordinate Class Notes

Subordinate Class Notes

--Series 1998 class C-1 affirmed at 'B-sf'; Outlook to Stable from Negative.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 20, 2014);

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria'(June 23, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708795

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=869374

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Contacts

Fitch Ratings
Primary Analyst:
Lisette Figueroa, +1-212-908-0836
Analyst
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson:
Tracy Wan, +1-212-908-9171
Senior Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst:
Lisette Figueroa, +1-212-908-0836
Analyst
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
or
Committee Chairperson:
Tracy Wan, +1-212-908-9171
Senior Director
or
Sandro Scenga, +1-212-908-0278
Media Relations, New York
sandro.scenga@fitchratings.com