Fitch Ratings affirms all the outstanding student loan notes issued by SLM Private Credit Student Loan Trust 2006-B (2006-B) and 2006-C (2006-C) at their current ratings. For both trusts, the Rating Outlook is revised to Stable from Negative for the class B and C notes; but remains Negative for the class A notes. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
--Adequate Collateral Quality: The trusts are collateralized by approximately $1.14 billion and $641.6 million of private student loans for 2006-B and 2006-C respectively. The loans were originated by Navient Corp (fka SLM Corp) under the Signature Education Loan Program, LAWLOANS program, MBALoans program, and MEDLOANS program. The projected remaining defaults are expected to range between 9%-15% for both trusts. A recovery rate of 10% was applied, which was determined to be appropriate based on data provided by the issuer.
--Sufficient Credit Enhancement: Transaction credit enhancement (CE) is sufficient to provide loss coverage for the class A, B, and C notes at each respective rating category. CE is provided by a combination of overcollateralization (the excess of the trust's asset balance over the bond balance), excess spread, and subordination. The parity ratio (total assets to total liabilities) is 104.56% for 2006-B and 103.76% for 2006-C as of the most recent distribution.
--Adequate Liquidity Support: Liquidity support is provided by reserve accounts sized at approximately $4.99 million for 2006-B and $2.7 million for 2006-C.
--Servicing Capabilities: Day-to-day servicing is provided by Navient Solutions Inc., which has demonstrated satisfactory servicing capabilities.
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.
Fitch has taken the following rating actions:
SLM Private Credit Student Loan Trust 2006-B:
--Class A-4 affirmed at 'AAsf'; Outlook Negative;
--Class A-5
affirmed at 'AAsf'; Outlook Negative;
--Class A-5w affirmed at
'AAsf'; Outlook Negative
--Class B affirmed at 'Asf'; Outlook
revised from Negative to Stable;
--Class C affirmed at 'BBBsf';
Outlook revised from Negative to Stable.
SLM Private Credit Student Loan Trust 2006-C:
--Class A-4 affirmed
at 'AA-sf'; Outlook Negative;
--Class A-5 affirmed at 'AA-sf';
Outlook Negative;
--Class B affirmed at 'BBBsf'; Outlook revised
from Negative to Stable;
--Class C affirmed at 'BBsf'; Outlook
revised from Negative to Stable.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'U.S. Private Student
Loan ABS Criteria' Jan. 29, 2014;
--'Global Structured Finance
Rating Criteria' Aug. 4, 2014.
Applicable Criteria and Related Research:
U.S. Private Student Loan
ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956
Global
Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=974795
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.
