Fitch Affirms 10 Classes from 5 SMS FFELP Student Loan Transactions.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms 10 classes from the following Federal Family Education Loan Program The Federal Family Education Loan Program (FFELP) is a United States Department of Education program that provides for private organizations to market, originate, and service federally guaranteed loans, such as Stafford and PLUS loans to students and their parents. (FFELP FFELP Federal Family Education Loan Program ) student loan asset-backed notes issued by SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. Corp. (SMS): SMS Student Loan Trust 1998-A --Class A-2 affirmed at 'AAA'; --Class B affirmed at 'AAA'. SMS Student Loan Trust 1999-A --Class A-2 affirmed at 'AAA'; --Class B affirmed at 'AAA'. SMS Student Loan Trust 1999-B --Class A-2 affirmed at 'AAA'; --Class B affirmed at 'AAA'. SMS Student Loan Trust 2000-A --Class A-2 affirmed at 'AAA'; --Class B affirmed at 'AAA'. SMS Student Loan Trust 2000-B --Class A-2 affirmed at 'AAA'; --Class B affirmed at 'AAA'. The rating affirmations and upgrades are based on the quality and performance of the FFELP loan collateral, the credit enhancement provided, and the sound legal structure. Overall, the collateral performance of the SMS FFELP student loans financed by the various trusts has been consistent with or better than Fitch's expectations from a net loss perspective. FFELP loans are guaranteed by an eligible guarantor to at least 97% of principal and accrued interest, depending on loan origination date. The FFELP loans are also reinsured by the U.S. Department of Education up to the same amounts. Credit enhancement consists of excess spread, overcollateralization, and liquidity in the form of a reserve account and depending on deal seasoning, a cash capitalization account. Additionally, the class A notes benefit from subordination provided by the lower priority notes. The excess spread generated by the trusts has been sufficient to cover any losses and pay note principal to build credit enhancement. The loans are originated by SMS Corp. and serviced by SLM See service level management system and spatial light modulator. Corp. The SMS Trusts are the securitizations of Secondary Market Services LP, a subsidiary of the former USA Group and now Sallie Mae, Inc. SMS Corp. provides funds for educational loans, primarily federal guaranteed student loans originated under the FFELP. SMS Corp. and its subsidiaries are not sponsored by nor are agencies of the U.S. government. Fitch has assigned SLM Corp. long- and short-term Issuer Default Ratings of 'BBB' and 'F3', respectively. Fitch has assigned Sallie Mae a servicer rating of 'Proficient Plus'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 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 Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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