Fitch Affirms Goal Capital Funding Trust Series 2006-1

NEW YORK--()--Fitch Ratings has affirmed the ratings for Goal Capital Funding Trust series 2006-1 senior class notes at 'AAAsf' and the subordinate notes at 'A+sf'. The Rating Outlook remains Stable for all notes.

KEY RATING DRIVERS

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

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC), or the excess of the trust's asset balance over the note principal balance and excess spread. As of Mar. 2015, total parity is 101.93% and senior parity is 106.87%. Since total parity exceeds the cash release threshold of 100.25%, the trust is releasing cash.

Adequate Liquidity Support: Liquidity is provided by a reserve account sized at its floor of $2.9 million.

Satisfactory Servicing Capabilities: Day-to-day servicing is provided by AES, a servicing division of the Pennsylvania Higher Education Assistance Agency (PHEAA) and ACS Education, a wholly owned subsidiary of Xerox Educations Services LLC. Fitch believes that both are acceptable servicers 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:

Goal Capital Funding Trust series 2006-1:

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

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

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

--Class A-6 notes at 'AAAsf'; Outlook Stable;

--Class B notes at 'A+sf'; Outlook Stable.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (March, 2015);

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

Applicable Criteria and Related Research:

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

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

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985069

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Contacts

Fitch Ratings
Primary Analyst
Nicole Edwards
Director
+1-212-908-9114
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Kevin Corrigan
Senior Director
+1-212-908-0156
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Nicole Edwards
Director
+1-212-908-9114
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Kevin Corrigan
Senior Director
+1-212-908-0156
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com