OREANDA-NEWS. Fitch Ratings has taken the following rating actions on Goal Capital Funding Trust 2005-2:

--Class A-3 affirmed at 'AAAsf'; Outlook Stable.
--Class A-4 'AAAsf'; Rating Watch Negative maintained;
--Class B affirmed at 'A+sf'; Outlook Stable.

KEY RATING DRIVERS

Adequate Collateral Quality: The trust collateral consists of 100% FFELP student loans. In Fitch's opinion, the credit quality of the trust collateral is high based on the guarantees provided by the transaction's eligible guarantors and the reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest for the FFELP loans.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC), or the excess of the trust's asset balance over the note principal balance and excess spread. The senior and total parity ratio is 107.79% and 101.86% respectively as of Jan. 25, 2016. The Class A notes also benefit from subordination provided by the class B notes.

Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at the greater of $1,467,647 or 0.25% of the pool balance.

Satisfactory Servicing Capabilities: Day-to-day servicing is provided by the Pennsylvania Higher Education Assistance Agency's (PHEAA) and Xerox Education Services LLC, both of which Fitch deems to be acceptable servicers of FFELP loans

On Nov. 18, 2015, Fitch released its exposure draft which delineates revisions it plans to make to the 'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria', dated June 23, 2014. Fitch has reviewed this transaction under both the existing and proposed criteria.

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 build-up of CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.