OREANDA-NEWS. Fitch Ratings affirms the senior and subordinate notes issued by South Carolina Student Loan Corp. (SCSLC) - 1996 General Resolution. The Rating Outlook for both classes remains Stable.

--Series 2005 A-3 at 'AAAsf'; Outlook Stable;

--Series 2006 A-2 at 'AAAsf'; Outlook Stable;

--Series 2014 A-1 at 'AAAsf'; Outlook Stable;

--Series 2014 A-2 at 'AAAsf'; Outlook Stable;

--Series 2014 B at 'AAsf'; Outlook Stable.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral consists 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. The current U. S. sovereign rating is 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement: Credit enhancement (CE) is provided by overcollateralization, excess spread, and for the senior bonds, subordination provided by the class B bonds. As of March 31, 2016, senior and total parities are 117.84% and 106.94%, respectively. The trust is in turbo and excess cash cannot be released from the trust until all the bonds are paid in full.

Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at the greater of (a) 1% of the outstanding balance of the series 2005 and 2006 bonds and 0.25% of the outstanding balance of the series 2014 bonds, (b) 0.10% of the original principal of all bonds outstanding, and (c) $750,000. Additionally, the trust possesses a Supplemental Reserve Fund, currently sized at approximately $58.78 million, which will be used to assist in making targeted amortization payments on the bonds, and will terminate Dec. 1, 2018, at which time any remaining balance will be used as available funds.

Acceptable Servicing Capabilities: Day-to-day servicing will be provided by SCSLC, and Nelnet Servicing, LLC (Nelnet) will be the back-up servicer. All servicers have demonstrated adequate servicing capabilities.

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 build-up of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.