Fitch Affirms Access Funding 2013-1 LLC
KEY RATING DRIVERS
High Collateral Quality: The trust collateral comprises Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch's current U.S. sovereign rating is 'AAA' with a Stable Outlook.
Sufficient Credit Enhancement: Credit Enhancement (CE) is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of December 2014, the parity is 104.68%. The trust is in turbo, and no funds will be released until the notes are paid in full.
Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at the greater of 0.25% of the principal amount of the notes and 0.10% of the initial principal amount of the notes (\$398,785). The reserve account is sized at \$1,734,188 as of December 2014.
Acceptable Servicing Capabilities: Xerox Education Services, Inc, (XEROX-ES) is responsible for day-to-day servicing of the trust. Fitch believes XEROX-ES to be an acceptable servicer of FFELP student loans.
Since the FFELP student loan ABS relies 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 CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.
Initial Key Rating Drivers and Rating Sensitivities are further described in the presale report titled 'Access Funding 2013-1 LLC Class A (US ABS)', dated Mar. 15, 2013.
Fitch has affirmed the following rating:
Access Funding 2013-1 LLC:
--Class A at 'AAAsf'; Outlook Stable.
A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms (RW&Es) to those of typical RW&Es for that asset class is available by accessing the appendix that accompanies the initial presale report. Please refer to 'Access Funding 2013-1 LLC Class A - Appendix', published on Mar. 15, 2013 at www.fitchratings.com.