Fitch Affirms New York Higher Ed Finance Auth, NYHELPs Education Loan Rev Bonds, 2009 Ser A

NEW YORK--()--Fitch Ratings affirms the ratings on the State of New York Higher Education Finance Authority (NYHEFA), new york higher education loan program education loan revenue bonds, 2009 series A (NYHELPs 2009-A) at 'A+sf'. The Rating Outlook remains Stable.

KEY RATING DRIVERS

Adequate Collateral Quality: As of April 30, 2014, the trust is collateralized by approximately $11.2 million fixed-rate private student loans originated by NYHEFA. NYHEFA originated new private student loans through the end of the origination period in May 2012. Based on the trust's performance, Fitch estimates remaining defaults to be 9%-12% of the current principal balance. Recovery is assumed to be 35% in Fitch's analysis.

Sufficient Credit Enhancement: Transaction credit enhancement (CE) is sufficient to provide loss coverage multiples corresponding to Fitch's 'A+' rating category. CE is provided by overcollateralization (OC; the excess of the trust's asset balance over the bond balance) and excess spread. The parity ratio (total assets to total liabilities) for NYHEFA 2009 series A is 128.63% as of April 30, 2013; however, credit was only given to the release level of 118%.

Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at $500,000.

Satisfactory Servicing Capabilities: Day-to-day servicing is provided by Firstmark Services, LLC, which is a subsidiary of Nelnet, Inc. that specializes in alternative student loans. Firstmark Services, LLC has demonstrated satisfactory servicing capabilities.

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.

Fitch affirms the following ratings:

State of New York Higher Education Finance Authority (NYHEFA), New York higher education loan program education loan revenue bonds, 2009 series A (NYHELPs 2009-A):

--Serial 2015-1 at 'A+sf'; Outlook Stable;

--Serial 2015-2 at 'A+sf'; Outlook Stable;

--Serial 2015-3 at 'A+sf'; Outlook Stable;

--Serial 2016-1 at 'A+sf'; Outlook Stable;

--Serial 2016-2 at 'A+sf'; Outlook Stable;

--Serial 2016-3 at 'A+sf'; Outlook Stable;

--Serial 2017-1 at 'A+sf'; Outlook Stable;

--Serial 2017-2 at 'A+sf'; Outlook Stable;

--Serial 2018-1 at 'A+sf'; Outlook Stable;

--Serial 2018-2 at 'A+sf'; Outlook Stable;

--Serial 2019-1 at 'A+sf'; Outlook Stable;

--Serial 2019-2 at 'A+sf'; Outlook Stable;

--Serial 2020-1 at 'A+sf'; Outlook Stable;

--Serial 2020-2 at 'A+sf'; Outlook Stable;

--Term 2024 at 'A+sf'; Outlook Stable;

--Serial 2025 at 'A+sf'; Outlook Stable;

--Serial 2026-1 at 'A+sf'; Outlook Stable;

--Serial 2026-2 at 'A+sf'; Outlook Stable.

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

Applicable Criteria and Related Research:

--'U.S. Private Student Loan ABS Criteria' (Jan. 29, 2014);

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

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

U.S. Private Student Loan ABS Criteria

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=917295

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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 (New York)
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 (New York)
sandro.scenga@fitchratings.com