Published: January 30, 2012
Fitch Affirms Rhode Island Student Loan Authority 2008 Trust; Revises Outlook to Stable
NEW YORK - (BUSINESS WIRE) - Fitch Ratings has affirmed the ratings on the outstanding senior class A
and subordinate class I notes for the Rhode Island Student Loan
Authority (RISLA) 2008 Trust notes. Fitch has also revised the Rating
Outlook on the notes to Stable from Negative. A detailed list of rating
actions is provided at the end of this release.
Fitch's Global Structured Finance Rating Criteria and Private Student
Loan Asset-Backed Securities (ABS) Criteria were used to review the
transaction.
The rating affirmation of the senior class A notes at 'AAAsf' and
subordinate class I notes at 'Asf' is based on loss coverage multiples
commensurate with the notes' assigned ratings and is based on the
collateral performance data as of Sept. 30, 2011. Although Fitch's view
of the private student loan sector is negative in general, Fitch has
revised the Rating Outlook on the RISLA 2008 Trust notes to Stable as
the trust is performing in-line with expectations.
Loss coverage multiples were determined by comparing projected net loss
amounts to available credit enhancement. Fitch used historical vintage
loss data provided by the Rhode Island Student Loan Authority to form a
loss timing curve representative of the RISLA 2008 Trust's collateral
pool. After giving credit for seasoning of loans in repayment, Fitch
applied the trust's current cumulative gross loss level to this loss
timing curve to derive the expected gross losses over the projected
remaining life. A recovery rate was applied, which was determined to be
appropriate based on the latest data provided by the issuer.
Credit enhancement consists of excess spread and overcollateralization.
Fitch assumed excess spread to be the lesser of the average historical
excess spread (earning on the assets minus interest payments to
bondholders and fees) and the most recent 12-month average excess
spread, and applied that same rate over the stressed projection of
remaining life.
The collateral supporting the RISLA 2008 Trust notes consists entirely
of private student loans originated under RISLA's Rhode Island Family
Education Loan (RIFEL) program and are serviced by RISLA, which is not
rated by Fitch. Although Fitch does not explicitly rate the
above-referenced servicer, Fitch considers its servicing ability to be
satisfactory.
Fitch affirms and revises Outlooks on the Rhode Island Student Loan
Authority 2008 Trust notes as follows:
Rhode Island Student Loan Authority 2008 Trust
--Series 2008A 12-01-2013 at 'AAAsf'; Outlook to Stable from Negative;
--Series 2008A 12-01-2014 at 'AAAsf'; Outlook to Stable from Negative;
--Series 2008A 12-01-2015 at 'AAAsf'; Outlook to Stable from Negative;
--Series 2008A 12-01-2016 at 'AAAsf'; Outlook to Stable from Negative;
--Series 2008A 12-01-2017 at 'AAAsf'; Outlook to Stable from Negative;
--Series 2008A Term 12-01-2018 at 'AAAsf'; Outlook to Stable from
Negative;
--Series 2008A Term 12-01-2023 at 'AAAsf'; Outlook to Stable from
Negative;
--Series 2008A Term 6-01-2028 at 'AAAsf'; Outlook to Stable from
Negative;
--Series 2008I Term 12-01-2028 at 'Asf'; Outlook to Stable from Negative.
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:
--'U.S. Private Student Loan ABS Criteria' July 19, 2011;
--'Global Structured Finance Rating Criteria' Aug. 4, 2011.
Applicable Criteria and Related Research:
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=634449
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569
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 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 Ratings
Sandro Scenga, +1-212-908-0278
Media Relations,
New York
sandro.scenga@fitchratings.com
or
Primary
Analyst:
Jeffrey Prackup, +1-212-908-0839
Director
Fitch,
Inc.
One State Street Plaza
New York, NY 10004
or
Committee
Chairperson:
Tracy Wan, +1-212-908-9171
Senior Director
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