Fitch Affirms Rhode Island Student Loan Authority 2009 Trust

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed the ratings for the bonds issued by the Rhode Island Student Loan Authority (RISLA) 2009 Trust at 'Asf'. The Outlook remains Stable. A detailed list of rating actions follows at the end of this press release.

The affirmations are based on a sufficient level of enhancement to cover the applicable risk factor stresses. The collateral consists of 100% private student loans.

KEY RATING DRIVERS

Adequate Collateral Quality: As of December 2015, the trust is collateralized by approximately $168 million of private student loans with an additional $20 million in the acquisition fund for student loan purchases. The loans were originated under the Rhode Island Family Education Loan (RIFEL) program. The projected remaining defaults are expected to range between 6% - 9% of the current pool balance. A recovery rate of 55% was applied, which is determined to be appropriate based on data provided by the issuer.

Sufficient Credit Enhancement: Credit Enhancement is provided by overcollateralization and excess spread. The parity ratio is currently at 112.78% as of December 2015. Total parity level has consistently increased over the years since the trust has not reached its release level of 121%. However, on or after June 1, 2020, no cash releases will be permitted and any excess cash will be used to turbo existing bonds.

Adequate Liquidity Support: Liquidity support for the trust is provided by a debt service reserve fund sized at the greater of 3% of the bonds outstanding and $2,063,550 floor. The reserve fund balance as of Dec. 31, 2015 was $6,325,610.

Servicing Capabilities: Day-to-day servicing will be provided by RISLA, which has been servicing their own loans. Fitch views its servicing capabilities as highly effective based on their recovery history.

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.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch affirms the following ratings:

Rhode Island Student Loan Authority Series 2009

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2017* at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2019* at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Term 2030 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2010A

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable;

--Serial 2024 at 'Asf'; Outlook Stable;

--Serial 2025 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2010B

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2012A

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable;

--Serial 2024 at 'Asf'; Outlook Stable;

--Serial 2025 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2013A

--Serial 2016 at 'Asf'; Outlook Stable;

--Serial 2017 at 'Asf'; Outlook Stable;

--Serial 2018 at 'Asf'; Outlook Stable;

--Serial 2019 at 'Asf'; Outlook Stable;

--Serial 2020 at 'Asf'; Outlook Stable;

--Serial 2021 at 'Asf'; Outlook Stable;

--Serial 2022 at 'Asf'; Outlook Stable;

--Serial 2023 at 'Asf'; Outlook Stable;

--Serial 2024 at 'Asf'; Outlook Stable;

--Serial 2025 at 'Asf'; Outlook Stable;

--Serial 2026 at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2014A

--A (2016) at 'Asf'; Outlook Stable;

--A (2017) at 'Asf'; Outlook Stable;

--A (2018) at 'Asf'; Outlook Stable;

--A (2019) at 'Asf'; Outlook Stable;

--A (2020) at 'Asf'; Outlook Stable;

--A (2021) at 'Asf'; Outlook Stable;

--A (2022) at 'Asf'; Outlook Stable;

--A (2023) at 'Asf'; Outlook Stable;

--A (2024) at 'Asf'; Outlook Stable;

--A (2025) at 'Asf'; Outlook Stable;

--A (2026) at 'Asf'; Outlook Stable;

--A (2027) at 'Asf'; Outlook Stable;

--A (2028) at 'Asf'; Outlook Stable;

--A (2029) at 'Asf'; Outlook Stable.

Rhode Island Student Loan Authority Series 2015A

--A (2016) at 'Asf'; Outlook Stable;

--A (2017) at 'Asf'; Outlook Stable;

--A (2018) at 'Asf'; Outlook Stable;

--A (2019) at 'Asf'; Outlook Stable;

--A (2020) at 'Asf'; Outlook Stable;

--A (2021) at 'Asf'; Outlook Stable;

--A (2022) at 'Asf'; Outlook Stable;

--A (2023) at 'Asf'; Outlook Stable;

--A (2024) at 'Asf'; Outlook Stable;

--A (2025) at 'Asf'; Outlook Stable;

--A (2026) at 'Asf'; Outlook Stable;

--A (2027) at 'Asf'; Outlook Stable;

--A (2028) at 'Asf'; Outlook Stable;

--A (2029) at 'Asf'; Outlook Stable;

--A (2030) at 'Asf'; Outlook Stable;

--A (2031) at 'Asf'; Outlook Stable.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds (pub. 19 Dec 2014)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=838868

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. Private Student Loan ABS Criteria (pub. 31 Jul 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=868836

Additional Disclosures

Dodd-Frank Rating Information Disclosure Formhttps://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002043

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002043

Endorsement Policyhttps://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160405006735/en/

Fitch Ratings
Primary Analyst:
Emily Lee, +1-212-908-0667
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Michael Dean, +1-212-908-0556
Managing Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

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