OREANDA-NEWS. Fitch Ratings has affirmed at 'AAAsf' the ratings on the series 2012-1 notes issued by New Hampshire Higher Education Loan Corp. Series 2012-1. The Rating Outlook for the series 2012-1 notes is Stable.


Collateral Quality: The trust collateral is comprised of 100% Federal Family Education Loan Program (FFELP) loans. In Fitch's opinion, the credit quality of the trust collateral is higher based on the 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. The Stable Outlook on the notes is consistent with Fitch's affirmation of the U.S. sovereign rating at 'AAA'; Outlook Stable.

Credit Enhancement: Enhancement is provided by overcollateralization and excess spread. As of September 2015, reported parity is at 107.47%. Excess cash has not been released as the trust is currently in turbo. All remaining funds are used to pay down the notes. Excess funds may be released once all of the notes have been paid in full.

Liquidity Support: Support is provided by a reserve account currently sized at $359,293 as of September 2015.

Servicing Capabilities: Granite State Management Resources, as servicer, is responsible for servicing the trust. Fitch believes Granite State Management Resources is an acceptable servicer of FFELP student loans.


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 favourable basis factor conditions could lead to future upgrades.


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

Fitch affirms the following:

New Hampshire Higher Education Loan Corp. Series 2012-1:
--Series 2012-1 at 'AAAsf'; Outlook Stable.