NEW YORK?(BUSINESS WIRE)?
Fitch Ratings affirms both the senior notes at ?AAAsf? and subordinate student loan note at ?BBBsf? issued by SLM Student Loan Trust series 2007-2. The Rating Outlook remains Negative for the senior classes. The Outlook for the subordinate class is revised to Positive. Fitch used its ?Global Structured Finance Rating Criteria?, and ?U.S. FFELP Student Loan ABS Surveillance Criteria?, as well as ?Rating U.S. Federal Family Education Loan Program Student Loan ABS? to review the ratings.
The Positive Outlook is assigned to the subordinate note to account for the increase in 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 47.30% and the balance in the reserve account is at the floor of $4,000,000. As the notes pay down and the reserve account is funding at the floor level, the total parity calculated for use in Fitch?s analysis will continue to increase.
The ratings on the senior and subordinate notes are affirmed based on the sufficient level of credit to cover the applicable risk factor stresses. Credit enhancement for the senior and subordinate notes consists of overcollateralization and projected minimum excess spread, while the senior notes also benefit from subordination provided by the class B note.
Fitch has taken the following rating actions:
SLM Student Loan Trust, Series 2007-2:
?Class A-2:affirmed at ?AAAsf?; Outlook Negative ;
?Class A-3: affirmed at ?AAAsf?; Outlook Negative;
?Class A-4: affirmed at ?AAAsf?; Outlook Negative;
?Class B affirmed at ?BBBsf?; Outlook Positive;
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 ? (Aug. 4, 2011);
??Rating U.S. Federal Family Education Loan Program Student Loan ABS? (April 7, 2011);
??U.S. FFELP Student Loan ABS Surveillance Criteria? (May 10, 2011).
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria
U.S. FFELP Student Loan ABS Surveillance Criteria
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: . 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.
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