OREANDA-NEWS. Fitch Ratings affirms the senior notes at 'Asf' issued by Vermont Student Assistance Corporation (VSAC), education loan revenue bonds, senior series 2014A, tax-exempt fixed rate bonds, (VSAC 2014A). The Rating Outlook remains Stable for both classes.

KEY RATING DRIVERS

Adequate Collateral Quality: As of March 31, 2015, the trust is collateralized by approximately \$29.97 million of fixed rate private student loans which has been originated from deal closing through June 15, 2015. Additionally, there is approximately \$4.95 million remaining in the student loan account to be utilized for the origination of private student loans. The loans will be originated according to the underwriting criteria for the VSAC Fixed-Rate Private Loan program.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of March 31, 2015, the parity ratio (total assets to total liabilities) is 130.50% (23.37% CE), the cash release level. The trust can release cash given the parity of 130.50% is maintained.

Liquidity Support: Liquidity support is provided by a capitalized interest fund, currently \$2.32 million, and a debt service reserve fund of \$598,400. The capitalized interest fund will step down every six months until its termination date, December 15, 2017, at which time, any remaining amounts in this fund will be designated as available funds.

Satisfactory Servicing Capabilities: Day-to-day servicing will be provided by VSAC, which has been servicing its own private loans since 1994. Fitch believes the servicing operations are acceptable at this time.

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 evaluated the sensitivity of the ratings assigned to VSAC 2014A to increased defaults, reduced recoveries and excess spread over the life of the transaction. Fitch's analysis found that the transaction displays some sensitivity to the above factors, showing a potential downgrade to BBB and CCC.

For further discussion of Fitch's sensitivity analysis, please see the related presale report 'Vermont Student Assistance Corporation, Senior Series 2014A', dated May 21, 2014, available on 'www.fitchratings.com'.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following ratings:

Vermont Student Assistance Corporation, Series 2014A:
--A-2019 at 'Asf'; Outlook Stable;
--A-2020 at 'Asf'; Outlook Stable;
--A-2021 at 'Asf'; Outlook Stable;
--A-2022 at 'Asf'; Outlook Stable;
--A-2023 at 'Asf'; Outlook Stable;
--A-2024 at 'Asf'; Outlook Stable;
--A-2025 at 'Asf'; Outlook Stable;
--A-2026 at 'Asf'; Outlook Stable;
--A-2027 at 'Asf'; Outlook Stable;
--A-2028 at 'Asf'; Outlook Stable;
--A-2029 at 'Asf'; Outlook Stable;
--A-2030 at 'Asf'; Outlook Stable;
--A-2031 at 'Asf'; Outlook Stable;
--A-2032 at 'Asf'; Outlook Stable;
--A-2033 at 'Asf'; Outlook Stable.