Fitch Places 2 Student Loan ABS Classes from PARTS 2007-CT1 on Watch Negative

NEW YORK--(Business Wire)--
Fitch Ratings has placed two classes from PARTS Student Loan Trust
2007-CT1 asset-backed securities (ABS) on Rating Watch Negative as
follows:

PARTS Private Student Loan Trust Series 2007-CT1

--Class B 'A+';

--Class C 'BBB'.

Fitch's rating action follows Monday's bankruptcy filing by The
Education Resource Institute (TERI). PARTS 2007-CTI is collateralized
by private student loans, of which approximately 18% of the collateral
pool is guaranteed against default by TERI.

Fitch's concerns fall into two primary areas:

--Subordinate ratings where Fitch gave limited credit to TERI's
general reserves ('A+' rated tranches and below);

--Service levels related to collection and loss mitigation
functions, which if not maintained, could increase loss severity.

Classes rated at or below TERI's IFS rating at the time of the
transaction's close were afforded the benefit of TERI's general
reserves to pay for any defaults occurring on the portion of loans
financed in the trust that are guaranteed by TERI. As a result of
TERI's bankruptcy filing, Fitch is reviewing the PARTS 2007-CT1
transaction to determine if, absent TERI's ability to pay claims from
its general reserves, current credit enhancement levels are sufficient
to maintain the current ratings on the class B and C notes.

With regards to service levels, Fitch is analyzing whether TERI's
bankruptcy filing will impact the quality of collection and loss
mitigation efforts for the collateral financed by PARTS 2007-CT1.
Currently, TERI manages collections for defaulted collateral which is
ultimately conducted by third party service providers.

Fitch expects to complete its review of PARTS 2007-CT1 within 90
days. During this period, Fitch will continue to discuss the full
impact of TERI's bankruptcy filing with Student Loan Xpress, Inc.
(SLX), DB Structured Products, Inc. (DB), and TERI. If, during this
period, performance, operational or financial risks become more
pronounced, rating actions may happen sooner and additional tranches
could be downgraded or placed on Rating Watch Negative.

PARTS 2007-CT1 Collateral and Servicing:

The PARTS 2007-CT1 transaction consists entirely of private
student loans guaranteed by either TERI or the Lutheran Education
Assistance Resource Network (LEARN). The guarantee provided by LEARN
is in the form of a cash collateralized account pledged to the trust
and funded at close. Currently, approximately 18% and 81% of the loans
financed in the trust are guaranteed by either TERI or LEARN,
respectively.

The private student loans are intended to assist individuals in
financing their undergraduate or graduate education beyond what the
Federal Family Education Loan Program (FFELP) affords. All of the
loans were originated by SLX, a wholly-owned subsidiary of CIT Group
Inc. (CIT), under the respective guarantor's underwriting guidelines.
The majority of the loans were originated without a cosigner. In
addition, DB reviewed each loan product and selected loans meeting
certain underwriting criteria for inclusion in the trust.

SLX is the servicing administrator and is responsible for
overseeing the servicers to insure the private student loans are
serviced in accordance with applicable laws and TERI and LEARN
guidelines. Both Great Lakes Education Loan Services, Inc. (rated
'Proficient' for private loans by Fitch) and The Pennsylvania Higher
Education Assistance Agency (PHEAA) service the private student loan
collateral.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Andrea Murad, +1-212-908-0896
Gary Santo, +1-212-908-9172)
Sandro Scenga, +1-212-908-0278 (New York)

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