Fitch Affirms SLC Private Student Loan Trust 2010-A
OREANDA-NEWS. Fitch Ratings has affirmed all ratings for the outstanding student loan notes issued by SLC Private Student Loan Trust 2010-A (SLC 2010-A). The Rating Outlook remains Stable.
A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
Adequate Collateral Quality: The trust is collateralized by approximately $803.24 million of private student loans originated under Citibank's CitiAssist private student loan program, as Aug. 31, 2015. SLC and SLC Private Student Loan Trust 2010-A were subsequently purchased by Discover Bank. The program offered CitiAssist undergraduate and graduate, law and bar exam, proprietary, health professions, K-12 and residency, relocation, and review loans. The projected remaining defaults are expected to range between 10% - 11%. A recovery rate of 25% was applied which was determined to be appropriate based on SLC's recovery data.
Sufficient Credit Enhancement (CE): The transaction's CE is sufficient for the bonds to withstand the stressed scenarios at Fitch's 'AAA' rating category. CE is provided by a combination of excess spread and overcollateralization. As of the September 2015 distribution period, total parity for the class A notes is 250%. The trust is currently releasing cash since it has met the specified required overcollateralization level at 60. The cumulative default rate is less than 15%, currently at 4.85%.
Sufficient Liquidity Support: Liquidity support is provided by a reserve account sized at approximately $3.25 million that is equal to 0.25% of the initial pool balance.
Satisfactory Servicing Capabilities: Day-to-day servicing is provided by Discover Products Inc. (DPI), a wholly owned subsidiary of Discover Bank. Discover Bank serves as the master servicer. Both have demonstrated satisfactory servicing capabilities.
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
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch affirms the following:
SLM Private Student Loan Trust 2010-A:
--Class A at 'AAAsf'.
The Rating Outlook is Stable.