TEXT-Fitch takes rating actions on SLM Private Credit Student Loan 2007-A

Tue Feb 19, 2013 3:46pm EST

Feb 19 - Fitch Ratings has downgraded the subordinate and junior subordinate
notes issued by SLM Private Credit Student Loan Trust 2007-A. At the same time,
Fitch has affirmed the senior notes issued by SLM Private Education Loan Trust
2007-A and all outstanding classes of notes issued by SLM Private Credit Student
Loan Trust 2005-B, 2006-B and 2006-C. The Rating Outlook for these ratings has
been revised to Negative from Stable. Furthermore, Fitch has affirmed the
ratings issued by SLM Private Credit Student Loan Trust 2006-A, and the Outlook
remains Positive. Fitch used its 'Global SF Criteria' and 'U.S. Private SL ABS
Criteria' to review the transaction. A detailed list of ratings actions follows
at the end of this press release.

The downgrades on the ratings issued by SLM Private Credit Student Loan Trust
2007-A reflect insufficient loss coverage multiples to support existing ratings.
Fitch estimates the remaining defaults to range approximately from 14%-16% on
the trust. Losses have been accumulating at a faster pace over the last several
quarters. In addition, the class C-2 notes are auction rate securities which
could decrease the future amount of excess spread. Furthermore, cumulative
realized losses as of the December 2012 distribution date are 14.12% and are
likely to breach the cumulative loss trigger within the next two years which
would cause all principal payments to be directed to the class A notes.

The affirmation on the class A notes issued by SLM Private Education Loan Trust
2007-A reflects sufficient loss coverage multiples to support the existing
rating and the high probability that the transaction will breach the cumulative
loss trigger and senior parity will increase significantly as the class A notes
receive all principal payments until paid in full.

The affirmation on the outstanding notes issued by SLM Private Education Loan
Trust 2005-B, 2006-A, 2006-B and 2006-C reflects sufficient loss coverage
multiples to support the existing rating. Fitch estimates remaining defaults for
the 2005-B, 2006-B and 2006-C trusts to range from 8%-12% and for the 2006-A
trust 4%-6%. Current parity levels are sufficient to cover the projected
remaining defaults at the current rating levels.

The Negative Outlook is driven by an increase in projected default levels in
excess of Fitch's initial expectations. In addition, the Outlooks reflect
Fitch's negative view on the private student loan sector in general.

The Positive Outlook on the rating issued by SLM Private Education Loan Trust
2006-A is due to lower remaining projected defaults than the other trusts and
credit enhancement that is sufficient to cover the remaining defaults even as
the trust releases excess cash.

Fitch projected future losses and derived loss coverage multiples based on the
latest performance data. The projected net loss amounts were compared to
available credit enhancement to determine the loss multiples appropriate for
each rating category. Credit enhancement consists of a combination of excess
spread, overcollateralization, and subordination.

The collateral securing the notes are private student loans originated to
undergraduate, graduate, law, Med and MBA students under the Signature and EXCEL
programs. In addition, the 2007-A trust is comprised of direct-to-consumer loans
and private consolidation loans. The private student loans are intended to
assist individuals in financing their undergraduate or graduate education beyond
FFELP limits.

Fitch takes the following actions:

SLM Private Credit Student Loan Trust 2007-A:
--Class A-2 affirmed at 'AA-sf'; Outlook revised to Negative from Stable;
--Class A-3 affirmed at 'AA-sf'; Outlook revised to Negative from Stable;
--Class A-4 affirmed at 'AA-sf'; Outlook revised to Negative from Stable;
--Class B downgraded to 'BBB+sf' from 'A+sf'; Outlook revised to Negative from
Stable;
--Class C-1 downgraded to 'BB+sf' from 'A-sf'; Outlook revised to Negative from
Stable;
--Class C-2 downgraded to 'BB+sf' from 'A-sf'; Outlook revised to Negative from
Stable.

SLM Private Credit Student Loan Trust 2005-B:
--Class A-2 affirmed at 'AAAsf'; Outlook revised to Negative from Stable;
--Class A-3 affirmed at 'AAAsf'; Outlook revised to Negative from Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook revised to Negative from Stable;
--Class B affirmed at 'AAsf'; Outlook revised to Negative from Stable;
--Class C affirmed at 'Asf'; Outlook revised to Negative from Stable.

SLM Private Credit Student Loan Trust 2006-A:
--Class A-3 affirmed at 'AAsf'; Outlook Positive;
--Class A-4 affirmed at 'AAsf'; Outlook Positive;
--Class A-5 affirmed at 'AAsf'; Outlook Positive;
--Class B affirmed at 'AA-sf'; Outlook Positive;
--Class C affirmed at 'A-sf'; Outlook Positive.

SLM Private Credit Student Loan Trust 2006-B:
--Class A-3 affirmed at 'AAAsf'; Outlook revised to Negative from Stable;
--Class A-4 affirmed at 'AAAsf'; Outlook revised to Negative from Stable;
--Class A-5 affirmed at 'AAAsf'; Outlook revised to Negative from Stable;
--Class B affirmed at 'AAsf'; Outlook revised to Negative from Stable;
--Class C affirmed at 'Asf'; Outlook revised to Negative from Stable.

SLM Private Credit Student Loan Trust 2006-C:
--Class A-2 Paid in Full;
--Class A-3 affirmed at 'AA-sf'; Outlook revised to Negative from Stable;
--Class A-4 affirmed at 'AA-sf'; Outlook revised to Negative from Stable;
--Class A-5 affirmed at 'AA-sf'; Outlook revised to Negative from Stable;
--Class B affirmed at 'A+sf'; Outlook revised to Negative from Stable;
--Class C affirmed at 'A-sf'; Outlook revised to Negative from Stable.


Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'U.S. Private Student Loan ABS Criteria', Jan. 31, 2012;
--'Global Structured Finance Rating Criteria', June 6, 2012;
--'Counterparty Criteria for Structured Finance Transactions', May 30, 2012.

Applicable Criteria and Related Research:
U.S. Private Student Loan ABS Criteria
Global Structured Finance Rating Criteria
Counterparty Criteria for Structured Finance Transactions