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Fitch Affirms SLM Private Education Loan Trust 2013-BNEW YORK --(Business Wire)-- Fitch Ratings affirms the ratings of the senior and subordinate notes issued by SLM Private Education Loan Trust 2013-B. The Rating Outlook remains Stable. A detailed list of rating actions follows at the end of this press release. KEY RATING DRIVERS Collateral Quality: The trust is collateralized by approximately $1.3 billion of private student loans as of February 2014 and consists of credit-tested private student loans originated under SLM's private student loan programs and underwritten to the respective guidelines. the weighted average Fair Isaac Corp. (FICO) score at origination was 740; 95% of the loans in the pool were made to four-year schools, and 80% of the loans in the pool were co-signed. Fitch projected remaining defaults to range between 9%-11% as of the current principal balance based on data provided by SLM. A recovery rate of 10% was applied which was determined to be appropriate based on data provided by the issuer. Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. Class A notes benefits from subordination provided by the class B notes. As of February 2014, senior and total parity ratio is at 136.64% and 121.79%, respectively. The trust currently cannot release any excess cash until it reaches its specified OC amount, which is the greater of 40% of the Pool Balance and $13,063,940. Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at approximately $3.27 million. Satisfactory Servicing Capabilities: Day-to-day servicing is provided by Sallie Mae Servicing, L.P. Fitch believes the servicing operations are satisfactory at this time. RATING SENSITIVITIES As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in CE and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch will continue to monitor the performance of the trust. Fitch affirms the following ratings: SLM Private Education Loan Trust 2013-B:
--Class A-1 at 'AAAsf'; Outlook Stable; Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: A comparison of the transaction's RW&Es to those of typical RW&Es for student loans is available by accessing the reports and links below:
--SLM Private Education Loan Trust 2013-B -- Appendix' dated April 23,
2013;
Applicable Criteria and Related Research:
Additional Disclosure
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