TEXT-S&P rates SLM Private Education Loan Trust 2012-C notes
(The following statement was released by the rating agency) OVERVIEW
-- SLM Private Education Loan Trust 2012-C's issuance is an ABS securitization backed by a pool of private student loans.
-- We assigned our ratings to the class A notes.
-- The ratings reflect our view of the transaction's credit support, payment structure, pool characteristics, and timely interest and principal payments, among other factors.
May 31 - Standard & Poor's Ratings Services today assigned its ratings to SLM Private Education Loan Trust 2012-C's student loan-backed notes (see list). The note issuance is an asset-backed securitization backed by a pool of private student loans. The ratings reflect our view of:
-- The availability of approximately 45.70%-48.85% credit support (based on the stressed break-even cash flow scenarios). This credit support level provides coverage of 4.1x-4.4x our 11.00%-11.50% expected net loss range;
-- The transaction's payment structure, which builds overcollateralization to 40.00% from 25.17% at closing. The overcollateralization is defined as the excess of the total assets over the notes divided by the total assets. The total assets include the loan pool and the fully funded, nondeclining reserve account, which equals 0.25% of the initial loan balance;
-- The pool characteristics, including a weighted average FICO score of 737 at the time of the loan application and co-borrowers on 79.06% of the loans;
-- The timely interest and principal payments by the final maturity date made in the cash flow runs that simulated our 'AAA' rating stress scenarios;
-- A scenario analysis, which indicates that under moderately stressful economic conditions (defined as about 2.1x the expected defaults) the ratings would not decline more than one rating category in the first year, which is consistent with our credit stability criteria; and
-- The transaction's legal structure. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available here. RELATED CRITERIA AND RESEARCH
-- Presale: SLM Private Education Loan Trust 2012-C, published May 22, 2012.
-- U.S. Interest Rate Assumptions Revised For April 2012, published March 30, 2012.
-- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, published Nov. 11, 2011.
-- Principles Of Credit Ratings, published Feb. 16, 2011.
-- Counterparty And Supporting Obligations Update, published Jan. 13, 2011.
-- Counterparty And Supporting Obligations Methodology And Assumptions, published Dec. 6, 2010.
-- Methodology: Credit Stability Criteria, published May 3, 2010.
-- Student Loan Criteria: The Rating Process For Student Loan Transactions, published Oct. 1, 2004.
-- Student Loan Criteria: Evaluating Risk In Student Loan Transactions, published Oct. 1, 2004.
-- Student Loan Criteria: Structural Elements In Student Loan Transactions, published Oct. 1, 2004.
-- Student Loan Criteria: Rating Methodology For Student Loan Transactions, published Oct. 1, 2004.
-- Student Loan Criteria: Legal Considerations For Student Loan Transactions, published Oct. 1, 2004. RATINGS ASSIGNED SLM Private Education Loan Trust 2012-C Class Rating Amount
(mil. $) A-1 AAA (sf) 781.00 A-2 AAA (sf) 354.00 (New York Ratings Team)
- Tweet this
- Share this
- Digg this