Fitch Takes Various Rating Actions on Access Group 2005-A

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has downgraded the outstanding senior notes issued by Access Group Inc., 2005-A to 'AAsf' from 'AAAsf'. The Rating Outlook has been revised to Stable from Negative. The ratings of the subordinate notes are affirmed at 'BBsf', and the outlook remains Stable. The downgrade of the senior notes is based on loss coverage multiples that are no longer sufficient to maintain the current ratings. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Adequate Collateral Quality: The trust is collateralized by approximately $130.6 million of private student loans as of the end of the September 2015 collection period. The loans were originated by Access Group, Inc. Based upon the trust's performance, the projected remaining gross defaults are expected to be in the range of 9-11% of the current collateral balance. A recovery rate of 23.5% was applied, which was determined to be appropriate based on the latest data provided by the issuer.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization, excess spread, and for the senior notes, subordination provided by the subordinate notes. As of the October 2015 distribution, the senior and total parity ratios are 124.51% and 103%, respectively. The trust is releasing excess spread since it has reached its release total parity level of 103%.

Adequate Liquidity Support: Liquidity support is provided by a $1,000,000 capitalized interest account.

Satisfactory Servicing Capabilities: Day-to-day servicing is provided by Xerox Education Services. Fitch believes the servicing operations are acceptable 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 bonds and may make certain bond 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 has downgraded the following rating:

Access Group, Inc. Series 2005-A:

--Class A-3 to 'AAsf' from 'AAAsf'; Outlook revised to Stable from Negative.

Fitch has affirmed the following rating:

Access Group, Inc. Series 2005-A:

--Class B at 'BBsf'; 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

Rating Criteria for Structured Finance Servicers (pub. 23 Apr 2015)https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=864375

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=994239

Solicitation Statushttps://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=994239

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/20151117006624/en/

Fitch Ratings
Primary Analyst:
Nicole Edwards, +1-212-908-9114
Director
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson:
Michael Dean, +1-212-908-0556
Senior Director
or
Media Relations:
Sandro Scenga, +1-212-908-0278
New York
[email protected]

Source: Fitch Ratings

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