OREANDA-NEWS. Fitch Ratings rates Edsouth Indenture No. 10, LLC Series 2015-2 as follows:

--$213,000,000 class A notes 'AAAsf'; Outlook Stable;
--$3,500,000 class B notes 'Asf'; Outlook Stable.

KEY RATING DRIVERS

Collateral Quality: The trust collateral is comprised entirely of student loans originated under Federal Family Education Loan Program (FFELP). Although the trust consists of approximately 66.07% of rehabilitated FFELP Loans, the credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and at least 97% reinsurance of principal and accrued interest provided by the U.S. Department of Education (ED). Fitch rates the U.S. sovereign rating at 'AAA' with a Stable Rating Outlook.

Sufficient Credit Enhancement: Credit enhancement is provided by $5,832,380 overcollateralization (OC) and excess spread. At closing, a senior parity of 104.38% and total parity of 102.69% is expected. The trust is in turbo and funds cannot be released from the trust unless all the series 2015-2 notes have been paid in full. Fitch reviewed transaction cash flows stressed at Fitch's 'AAAsf' and 'Asf' for the senior and subordinate notes, respectively, and the cash flow results were satisfactory under the corresponding stress scenarios.

Adequate Liquidity Support: Liquidity support for the ESA
2015-2 notes is provided by a $2,195,900 capitalized interest fund and a $548,969 debt service reserve fund. The capitalized interest fund will step down to approximately $1,097,950 on the December 2016 distribution date and the remaining amount will be released on the December 2017 distribution date as available funds. The debt service reserve fund requirement will be equal to the greater of 0.25% of the outstanding pool balance and 0.15% of the initial pool balance. The capitalized interest and debt service reserve fund will be funded at closing with note proceeds.

Acceptable Servicing Capabilities: Pennsylvania Higher Education Assistance Agency (PHEAA) and Great Lakes Educational Loan Services Inc. (GLESI) are the servicers at 93.3% and 6.7% of the loan balance, respectively. Fitch has reviewed the servicing operations of each servicer and believes them to be acceptable servicers of FFELP student loans.

RATING SENSITIVITIES

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, basis risk, and loan extension risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults, basis shock beyond Fitch's published stresses, lower than expected payment speed, and other factors 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.

DUE DILIGENCE USAGE

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