NEW YORK - (Business Wire) Fitch Ratings has affirmed 24 classes from the Federal Family Education Loan Program (FFELP) student loan revenue bonds issued by North Carolina State Education Assistance Authority (NCSEAA) 1995 General Resolution.
The collateral supporting the bonds consists of federally guaranteed loans originated under the FFELP. FFELP loans are guaranteed by an eligible guarantor to at least 97% of principal and accrued interest, depending on loan origination date. The FFELP loans are also reinsured by the U.S. Department of Education up to the same amounts.
Overall, collateral performance for all of the trusts has been consistent with expectations from a net default and delinquency perspective. The trust consists of 80% taxable auction rate debt and 20% floating debt. Most of the maximum auction rates are tied to SIFMA rate. Parity ratios, or the ratio of assets to liabilities, have remained stable despite the auction fails. The total parity ratio for the trust as of June 30, 2008 was 107.62%.
Credit enhancement consists of excess spread and a debt service reserve account in the amount of $84.62 million as of June 30, 2008. Additionally, the senior notes benefit from subordination provided by the lower priority notes.
On Oct. 31, NCSEAA issued series 2008-2 bonds out of a newly established 2008-2 VRDB General Resolution. $150 million proceeds from this deal were used to redeem some senior auction bonds in the 1995 General Resolution, and the same amounts of collateral were transferred from the 1995 trust to the 2008-2 trust. As a result of this transaction, the total parity ratio increased slightly and the cost of fund for the remaining bonds will decrease.
The student loan portfolio is serviced by College Foundation Inc.
NCSEAA's 1995 General Resolution student loan revenue bond ratings are affirmed as follows:
--Senior series 1997E at 'AAA';
--Senior series 2001J at 'AAA';
--Senior series 2002K-1 at 'AAA';
--Senior series 2002K-2 at 'AAA';
--Senior series 2003M-1 at 'AAA';
--Senior series 2003M-2 at 'AAA';
--Senior series 2003M-3 at 'AAA';
--Senior series 2003N at 'AAA';
--Senior series 2004O-1 at 'AAA';
--Senior series 2004O-2 at 'AAA';
--Senior series 2004O-3 at 'AAA';
--Senior series 2004O-4 at 'AAA';
--Senior series 2004O-5 at 'AAA';
--Senior series 2005P at 'AAA';
--Senior series 2006Q-2 at 'AAA';
--Senior series 2006Q-3 at 'AAA';
--Senior series 2006Q-4 at 'AAA';
--Subordinate series 2006Q-Sub at 'A';
--Senior series 2007S-1 at 'AAA';
--Senior series 2007S-2 at 'AAA';
--Senior series 2007S-3 at 'AAA';
--Senior series 2007S-4 at 'AAA';
--Senior series 2007S-5 at 'AAA';
--Subordinate series 2007S-Sub at 'A'.
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, New York
Tracy Wan, 212-908-9171
Stefanie Leung, 212-908-0826
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: sandro.scenga@fitchratings.com
