Published: January 17, 2012
Fitch Affirms Senior and Subordinate Notes of SLM Student Loan Trust 2006-3
NEW YORK - (BUSINESS WIRE) - Fitch Ratings has affirmed the senior and subordinates notes issued by
SLM Student Loan Trust 2006-3 senior notes at 'AAAsf' with a Negative
Rating Outlook. Fitch has affirmed the subordinate note at 'A+sf' and
revised the Outlook to Positive from Stable.
Fitch used its 'Global Structured Finance Rating Criteria,' 'U.S. FFELP
Student Loan ABS Rating Criteria' and 'Rating U.S. Federal Family
Education Loan Program Student Loan ABS' to review the ratings.
Fitch revised the Outlook to Positive on the subordinate note to account
for the increase in total parity and positive performance trends. This
transaction is structured to exclude the reserve account from the parity
calculation once the pool factor falls below 40%. However, Fitch gives
credit to the funds in the reserve account when conducting our analysis.
The current pool factor is 25.86%, and the balance in the reserve
account is at the floor of $2,502,119. As the notes paydown and the
reserve account is funding at the floor level, the total parity
calculated for use in Fitch's analysis will continue to increase.
Affirmation of the senior and subordinate notes are based on the
sufficient level of enhancement any combination of
overcollateralization, subordination, and projected minimum excess
spread to cover the applicable risk factor stresses.
Fitch has taken the following rating actions:
SLM Student Loan Trust 2006-3:
--Class A-4 affirmed at 'AAAsf'; Outlook Negative;
--Class A-5 affirmed at 'AAAsf'; Outlook Negative;
--Class B affirmed at 'A+sf'; Outlook to Positive from Stable.
Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer, and
therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria,' dated Aug. 4, 2011;
--'Rating U.S. Federal Family Education Loan Program Student Loan ABS',
dated April 7, 2011;
--'U.S. FFELP Student Loan ABS Surveillance Criteria', dated May 10,
2011.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
Rating U.S. Federal Family Education Loan Program Student Loan ABS
Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616766
U.S. FFELP Student Loan ABS Surveillance Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=597566
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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 THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
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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
Primary Analyst
Stefanie Leung, +1-212-908-0826
Director
Fitch,
Inc.
One State Street Plaza
New York, NY 10004
or
Committee
Chairperson
Cynthia Ulrich, +1-212-908-0609
Senior Director
or
Media
Relations:
Sandro Scenga, +1-212-908-0278
Email: sandro.scenga@fitchratings.com
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