Fitch Assigns Ratings to Brazos Higher Education Authority Student Loan Revenue Notes.

NEW YORK -- Fitch has assigned ratings to the following Student Loan Revenue Notes Series 2006-2 issued by Brazos Higher Education Authority, Inc. (Brazos):

Ratings for new issuance:

-- $233,233,000 Senior Series 2006 I-A-9 'AAA';

-- $416,567,000 Senior Series 2006 I-A-10 'AAA';

-- $50,000,000 Senior Series 2006 I-A-11 'AAA';

-- $80,050,000 Senior Series 2006 I-A-12 'AAA';

-- $80,050,000 Senior Series 2006 I-A-13 'AAA';

-- $60,050,000 Senior Series 2006 I-A-14 'AAA';

-- $30,050,000 Senior Series 2006 I-A-15 'AAA';

-- $50,000,000 Subordinate Series 2006 I-B-2 'A';

Ratings on previously issued notes:

-- $231,496,000 Senior Series 2004 I-A-1, 'AAA';

-- $362,600,000 Senior Series 2004 I-A-2, 'AAA';

-- $70,000,000 Subordinate Series 2004 I-B-1, 'A';

-- $150,500,000 Senior Series 2005 I-A-1, 'AAA';

-- $200,000,000 Senior Series 2005 I-A-2, 'AAA';

-- $223,000,000 Senior Series 2005 I-A-3, 'AAA';

-- $240,000,000 Senior Series 2005 I-A-4, 'AAA';

-- $33,000,000 Subordinate Series 2005 I-B-1, 'A';

-- $253,981,000 Senior Series 2005 I-A-8, 'AAA';

-- $281,957,000 Senior Series 2005 I-A-9, 'AAA';

-- $272,393,000 Senior Series 2005 I-A-10, 'AAA';

-- $128,573,000 Senior Series 2005 I-A-11, 'AAA';

-- $324,759,000 Senior Series 2005 I-A-12, 'AAA';

-- $69,100,000 Subordinate Series 2005 I-B-2, 'A';

-- $305,000,000 Senior Series 2005 I-A-13, 'AAA';

-- $300,000,000 Senior Series 2005 I-A-14, 'AAA';

-- $192,000,000 Senior Series 2005 I-A-15, 'AAA';

-- $153,000,000 Senior Series 2005 I-A-16, 'AAA';

-- $50,000,000 Subordinate Series 2005 I-B-3, 'A'

-- $181,175,000 Senior Series 2006 I-A-1, 'AAA';

-- $296,650,000 Senior Series 2006 I-A-2, 'AAA';

-- $152,100,000 Senior Series 2006 I-A-3, 'AAA';

-- $36,410,000 Senior Series 2006 I-A-4, 'AAA';

-- $72,450,000 Senior Series 2006 I-A-5, 'AAA';

-- $72,420,000 Senior Series 2006 I-A-6, 'AAA';

-- $62,100,000 Senior Series 2006 I-A-7, 'AAA';

-- $31,050,000 Senior Series 2006 I-A-8, 'AAA';

-- $50,000,000 Subordinate Series 2006 I-B-1, 'A';

Fitch assigns ratings to the new Series 2006-2 issuance and confirms ratings on the previously issued notes as listed above. The ratings are based on the quality of the student loan portfolio, the credit enhancement provided, and the sound legal structure. The collateral in the trust consists of 100% Federal Family Education Loan Program (FFELP) student loans. The trust benefits from a reserve fund sized at the greater of 0.75% of the aggregate principal amount of the bonds outstanding or $1,000,000. The ratings address the ability of the trust to redeem notes at maturity and pay timely interest. The ratings do not address the ability of the trust to pay carry-over interest, nor do they address the ability of the auction rate noteholders to successfully redeem their notes at an auction now or in the future.

The Series 2006-2 Notes are the sixth issuance under the Indenture of Trust between Brazos Higher Education Authority, Inc. and U.S. Bank National Association, as indenture trustee and eligible lender trustee, dated as of October 1, 2006. The proceeds of the Series 2006-2 Notes are being used to acquire FFELP student loans, make a deposit to the reserve fund, and pay issuance costs.

The senior Series 2006 I-A-9 and 2006 I-A-10 Notes are indexed to three month LIBOR. Interest on the notes is payable quarterly on the 25th of each March, June, September and December beginning June 26, 2006. The legal final maturity for the Series 2006 I-A-9 Notes is December 26, 2024, and the final maturity for the Series 2006 I-A-10 Notes is June 25, 2026.

The senior Series 2006 I-A-11 Notes are taxable, 7-day auction rate securities. Interest is payable on the first business day following the end of each auction period. The legal final maturity for the notes is June 25, 2042.

The senior Series 2006 I-A-12 through 2006 I-A-15 Notes and subordinate Series 2006 I-B-2 Notes are taxable, 28-day auction rate securities. Interest is payable on the first business day following the end of each auction period. The legal final maturity for the notes is June 25, 2042.

As noted, the collateral securing the notes consists entirely of FFELP student loans. The FFELP loans are guaranteed at least 97% by an eligible guarantor and re-insured by the U.S. Department of Education (ED) depending on their disbursement date.

The issuer is Brazos Higher Education Authority, Inc., a nonprofit, 501(c)(3) corporation organized in 1975 under the Texas Non-Profit Corporation Act which also operates pursuant to Chapter 53, Texas Education Code on behalf of the City of Waco, Texas. Brazos issues tax-exempt debt under its 150(d) tax designation by the Internal Revenue Code as a qualified scholarship funding corporation. Brazos is also affiliated with Brazos Higher Education Service Corporation, Inc. and Brazos Student Finance Corp.

Brazos Higher Education Service Corporation, Inc. is the servicer with ACS Education Services, CFS-SunTech, Great Lakes Educational Loan Services, Pennsylvania Higher Education Assistance Agency and Sallie Mae Servicing, acting as subservicers for the student loans.

Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.