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TMCNet:  Fitch Maintains Access Group 2005-2 Indenture of Trust Sr. Notes on Negative Watch; Upgrades Subs

[February 25, 2014]

Fitch Maintains Access Group 2005-2 Indenture of Trust Sr. Notes on Negative Watch; Upgrades Subs

NEW YORK --(Business Wire)--

Fitch Ratings maintains the Rating Watch Negative on the 'AAAsf' senior notes and upgrades the subordinate notes to 'Asf' from 'BBBsf' issued by Access Group, Inc. 2005-2 Indenture of Trust. The Rating Outlook remains Stable for the subordinate notes.

KEY RATING DRIVERS

High Collateral Quality:

The trust collateral is comprised of 100% of Federal Family Education Loan Program (FFELP) loans with guaranties provided by eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest.

Rating Watch Negative:

'AAAsf' rated tranches of U.S. FFELP student loan ABS (News - Alert) are maintained on Rating Watch Negative following the revision of the U.S. sovereign rating on Oct. 15, 2013.

Sufficient Credit Enhancement:

Credit Enhancement is provided by overcollateralization, excess spread and for the class A notes, subordination provided by the class B notes. The ratings on the class B notes are upgraded due to sufficient level of credit enhancement for a higher rating. As of the November 2013 distribution date, total parity is 100.25% and senior parity is 106.83%. Cash is being released from the trust given the trust has reached its release level threshold of 100.25% parity.

Adequate Liquidity Support:

Liquidity support is provided by a reserve account where the balance is determined as the greater of 0.25% of the outstanding notes and $979,500.

Acceptable Servicing Capabilities:

ACS (News - Alert), as the servicer, is responsible for the day-to-day servicing of this trust. In Fitch's opinion, ACS is an acceptable servicer of FFELP student loans.

RATING SENSITIVITIES

Since the FFELP student loan ABS relies 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 fuure downgrades. Likewise, a buildup of credit enhancement driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.

Fitch has taken the following rating actions:

Access Group, Inc. 2005-2 Indenture of Trust:

--Class A-3 note at 'AAAsf'; Rating Watch Negative maintained;

--Class A-4 note at 'AAAsf'; Rating Watch Negative maintained;

--Class B upgraded to 'Asf' from 'BBBsf'; Outlook Stable.

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 -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708795

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=821634

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE '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 MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.


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