[April 27, 2015]

Fitch Affirms Alaska Student Loan Corp. - 2002 Indenture of Trust

Fitch Ratings has affirmed the student loan notes issued by Alaska Student Loan Corp. - 2002 Indenture of Trust (ASLC) series 2004, 2005, 2006 and 2007 at 'AAAsf'. The Rating Outlook is revised to Stable from Negative due to stable performance of the trust.

KEY RATING DRIVERS

Collateral Quality: The trust is collateralized by approximately $110.55 million non-defaulted private student loans as of Dec. 31, 2014. The current Fitch calculated cumulative gross defaults, as a percent of the original repayment balance, are at 13.28% with approximately 32% pool factor. Additionally, Fitch calculated projected remaining defaults are in the 20% - 23% range.

Adequate Credit Enhancement: CE is provided by overcollateralization and excess spread. Current parity is 257.36% an increase from the last review at 211.28%. In addition, no cash is being released from the trust as rating agency confirmation is needed.

Liquidity Support: Liquidity is provided by a capital reserve fund currently at $1,244,373.

Servicing Capabilities: Day to day servicing is provided by Alaska Commission on Postsecondary Education. Fitch believes the servicing operations are acceptable at this time.

The Outlook revision is due to the stable performance of the trust.

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 credit enhancement 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.

The collateral securing the bonds consists entirely of private student loans that have been originated under Alaska Student Loan Corporation's Private Student Loan Program.

Fitch has affirmed the following ratings:

Alaska Student Loan Corp. - 2002 Indenture of Trust:

--$1,950,000 Series 2004 A-3 maturing on 6/1/2016 at 'AAAsf'; Outlook revised to Stable from Negative;

--$495,000 Series 2004 A-3 maturing on 6/1/2017 at 'AAAsf'; Outlook revised to Stable from Negative;

--$6,500,000 Series 2005 A maturing on 6/1/2015 at 'AAAsf'; Outlook revised to Stable from Negative;

--$6,500,000 Series 2005 A maturing on 6/1/2016 at 'AAAsf'; Outlook revised to Stable from Negtive;

--$5,000,000 Series 2005 A maturing on 6/1/2017 at 'AAAsf'; Outlook revised to Stable from Negative;

--$4,250,000 Series 2005 A maturing on 6/1/2018 at 'AAAsf'; Outlook revised to Stable from Negative;

--$6,500,000 Series 2006 A-2 maturing on 6/1/2015 at 'AAAsf'; Outlook revised to Stable from Negative;

--$6,500,000 Series 2006 A-2 maturing on 6/1/2016 at 'AAAsf'; Outlook revised to Stable from Negative;

--$6,500,000 Series 2006 A-2 maturing on 6/1/2017 at 'AAAsf'; Outlook revised to Stable from Negative;

--$6,500,000 Series 2006 A-2 maturing on 6/1/2018 at 'AAAsf'; Outlook revised to Stable from Negative;

--$2,500,000 Series 2007 A-2 maturing on 6/1/2015 at 'AAAsf'; Outlook revised to Stable from Negative;

--$2,500,000 Series 2007 A-2 maturing on 6/1/2016 at 'AAAsf'; Outlook revised to Stable from Negative;

--$3,000,000 Series 2007 A-2 maturing on 6/1/2017 at 'AAAsf'; Outlook revised to Stable from Negative;

--$3,000,000 Series 2007 A-2 maturing on 6/1/2018 at 'AAAsf'; Outlook revised to Stable from Negative;

--$500,000 Series 2007 A-2 maturing on 6/1/2019 at 'AAAsf'; Outlook revised to Stable from Negative;

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 30, 2014);

--'U.S. Private Student Loan ABS (News - Alert) Criteria' (Jan. 29, 2014).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864268

U.S. Private Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=983691

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.

[ Back To TMCnet.com's Homepage ]