NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms all ratings of the outstanding student loan notes issued by SLM Private Credit Student Loan Trust 2003-C (SLM 2003-C). The Rating Outlook remains Negative.
A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
--Collateral Quality: The trust is collateralized by approximately $474.3 million of private student loans originated by Navient Corp. under the Signature Education Loan Program, LAWLOANS program, MBALoans program, and MEDLOANS program. The projected remaining defaults are expected to range between 8%-10%. A recovery rate of 10% was applied which was determined to be appropriate based on data provided by the issuer.
--Credit Enhancement (CE): CE is provided by excess spread and the senior notes benefits from subordination provided by the junior notes. As of the June 16, 2014 distribution, the senior parity, subordinate parity and total parity ratios are 118.42%, 109.68% and 96.36% respectively comparable to levels observed last year.
--Liquidity Support: Liquidity support is provided by a reserve account sized at approximately $3.124 million.
--Servicing Capabilities: Day-to-day servicing is provided by Navient Solutions Inc., which 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:
SLM Private Credit Student Loan Trust 2003-C:
--Class A-2 affirmed at 'A-sf'; Outlook Negative;
--Class A-3 affirmed at 'A-sf'; Outlook Negative;
--Class A-4 affirmed at 'A-sf'; Outlook Negative;
--Class A-5 affirmed at 'A-sf'; Outlook Negative
--Class B affirmed at 'BBsf'; Outlook Negative;
--Class C affirmed at 'CCCsf'; RE 10%.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'U.S. Private Student Loan ABS Criteria' (January 2014);
--'Global Structured Finance Rating Criteria' (May 2014).
Applicable Criteria and Related Research:
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=849815
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