OREANDA-NEWS. Fitch Ratings affirms all notes issued by National Collegiate Student Loan Trust 2005-1, National Collegiate Student Loan Trust 2005-2 and National Collegiate Student Loan Trust 2005-3.


Collateral Quality: All trusts are collateralized by private student loans originated by First Marblehead Corporation. At deal inception all loans were guaranteed by The Education Resources Institute (TERI), but no credit was given to the TERI guaranty since TERI filed for bankruptcy on April 7, 2008. The remaining defaults for all trusts is projected to be 20-25% of the current balance, and recoveries are conservatively estimated to be 25% based on historical levels indicated in the distribution report.

Credit Enhancement: The trusts are under-collateralized as total parity is less than 100%. Senior notes benefit from subordination provided by the junior notes.

Liquidity Support: Liquidity support for the notes is provided by a reserve account for each trust.

Servicing Capabilities: Pennsylvania Higher Education Assistance Agency services between 96%-100% of each portfolio. Xerox Education Services, Great Lakes Educational Loan Services Inc., and Firstmark Services LLC service the remaining loans. Fitch believes all four servicers are acceptable servicers of private student loans based on their long servicing histories.

Criteria Variations:

Under the Counterparty Criteria for Structured Finance and Covered Bonds, dated July 18, 2016, Fitch looks to its own ratings in analyzing counterparty risk and assessing a counterparty's creditworthiness. The definition of the permitted investment for this deal allows possibility of using investments that do not meet Fitch's criteria, this represents a criteria variation. Fitch doesn't believes such variation have a measurable impact upon the ratings assigned.


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.


No third-party due diligence was provided or reviewed in relation to this rating action

Fitch has affirmed the following ratings:

National Collegiate Student Loan Trust 2005-1

--Class A-4 at 'Bsf'; Outlook Negative;

--Class A-5-1 at 'Bsf'; Outlook Negative;

--Class A-5-2 at 'Bsf'; Outlook Negative;

--Class B at 'Csf'; RE 0%;

--Class C at 'Csf'; RE 0%.

National Collegiate Student Loan Trust 2005-2

--Class A-4 at 'Csf'; RE 80%;

--Class A-5-1 at 'Csf'; RE 80%;

--Class A-5-2 at 'Csf'; RE 80%;

--Class B at 'Csf'; RE 0%;

--Class C at 'Csf'; RE 0%.

National Collegiate Student Loan Trust 2005-3

--Class A-4 at 'CCsf'; RE 85%;

--Class A-5-1 at 'CCsf'; RE 85%;

--Class A-5-2 at 'CCsf'; RE 85%;

--Class B at 'Csf'; RE 0%;

--Class C at 'Csf'; RE 0%.