[July 30, 2010]

Fitch Affirms SMS Student Loan Trust 1998A

Fitch Ratings has affirmed the senior student loan bond and the subordinate bond issued by SMS Student Loan Trust 1998A and assigned Outlooks as outlined below:

--Class A-2 affirmed at 'AAA/LS1'; Outlook Stable;

--Class B affirmed at 'AAA/LS3'; Outlook Stable.

Additionally, Fitch has removed the subordinated bond from Rating Watch Negative.

Fitch used its Global Structured Finance Rating Criteria and FFELP student loan ABS (News - Alert) rating criteria, as well as the refined basis risk criteria outlined in Fitch's June 29 press release ('Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria') to review the ratings.

The SMS Student Loan Trust 1998A notes pay interest at the note rate which is defined as the lower of the net loan rate and the note LIBOR rate; thereby, fully mitigating basis risk in the transaction. The likelihood of payment of the interest basis carryover, which is the excess of the note LIBOR rate over the net loan rate, is not addressed in Ftch's rating on the notes.

Additional information is available at www.fitchratings.com

Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=469406

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