Fitch Affirms Illinois Student Assistance Commission's 2010 Indenture Notes

Thu Jul 18, 2013 1:43pm EDT

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Fitch Affirms Illinois Student Assistance Commission's 2010 Indenture Notes

Fitch Ratings has affirmed the senior student loan notes issued by Illinois Student Assistance Commission 2010 Indenture at 'AAAsf'. The Rating Outlook, which is tied to the sovereign rating of the U.S. government, remains Negative.

KEY RATING DRIVERS

The ratings on the senior notes are affirmed based on the sufficient level of credit enhancement to cover the applicable risk factor stresses. Credit enhancement for the senior notes consists of overcollateralization and projected excess spread. The trust parity has increased to 110.16% as of March 2013.

RATING SENSITIVITIES

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 buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has affirmed the following rating:

Illinois Student Assistance Commission Series 2010-1:

--Class A-2 at 'AAAsf'; Outlook Negative;

--Class A-3 at 'AAAsf'; Outlook Negative.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' (May 17, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria - Effective Apr. 7, 2011 to Apr. 3, 2012

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616766

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=796919

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Fitch Ratings
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Fitch Ratings, Inc.
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