Fitch Ratings has upgraded
Class A-4 is assigned a Positive Outlook and the Outlook remains Positive for class A-3.
RATING ACTIONS
Entity / Debt
Rating
Prior
A-3 00432CBW0
LT
Asf
Upgrade
Bsf
A-4 00432CBX8
LT
Bsf
Upgrade
CCCsf
A-5 00432CBY6
LT
CCCsf
Affirmed
CCCsf
B 00432CBZ3
LT
CCCsf
Affirmed
CCCsf
Access Funding 2015-1 LLC
A 00435TAA9
LT
AAAsf
Affirmed
AAAsf
B 00435TAB7
LT
AAsf
Affirmed
AAsf
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VIEW ADDITIONAL RATING DETAILS
i
Transaction Summary
The upgrade to the rating on
KEY RATING DRIVERS
Collateral Performance: Based on transaction specific performance to date, Fitch assumed a sustainable constant default rate assumption (sCDR) of 2.0% for 2004-2 and 2.5% for 2015-1 and a sCPR of 6.25% for 2004-2 and 16.0% for 2015-1. The base case default rate is 11.5% for 2004-2 and 14.25% for 2015-1. The TTM levels of deferment and forbearance are 0.61% and approximately 3.0%, respectively, for 2004-2, and 2.8% and 4.8%, respectively, for 2015-1. These levels are used as the starting point in cash flow modeling and subsequent declines and increases are modeled as per criteria.
Basis and Interest Rate Risk: Basis risk for this transaction arises from any rate and reset frequency mismatch between interest rate indices for SAP and the securities. As of the end of the most recent collection period, all trust student loans are indexed to either 91-day T-bill or one month LIBOR and all notes are indexed to either one month or three months LIBOR.
Payment Structure: Credit enhancement (CE) is provided by excess spread and the class A notes benefit from subordination provided by the class B notes. All transactions are releasing excess cash as the parity of 101% is maintained for 2004-2 and the specified overcollateralization amount of the greater of 2.25% of the pool balance and
Operational Capabilities: Day-to-day servicing is provided by
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative rating action/downgrade:
'AAAsf'-rated tranches of most FFELP securitizations will likely move in tandem with the
This section provides insight into the model-implied sensitivities the transactions face when one assumption is modified, while holding others equal. Fitch conducts credit and maturity stress sensitivity analysis by increasing or decreasing key assumptions by 25% and 50% over the base case. The credit stress sensitivity is viewed by stressing both the base case default rate and the basis spread. The maturity stress sensitivity is viewed by stressing remaining term, IBR usage and prepayments. The results below should only be considered as one potential outcome, as the transaction is exposed to multiple dynamic risk factors and should not be used as an indicator of possible future performance.
Fitch has revised its global economic outlook forecasts as a result of the war in
Current Rating: Class A-3 'Asf', Class A-4 'Bsf'; Class A-5 and Class B 'CCCsf'.
Credit Stress Rating Sensitivity
Default increase 25%: class A-3 'Asf', class A-4 'Bsf', class A-5 'CCCsf'; class B 'CCCsf';
Default increase 50%: class A-3 'Asf', class A-4 'Bsf', class A-5 'CCCsf'; class B 'CCCsf';
Basis Spread increase 0.25%: class A-3 'Asf', class A-4 'Bsf', class A-5 'CCCsf'; class B 'CCCsf';
Basis Spread increase 0.5%: class A-3 'Asf', class A-4 'Bsf', class A-5 'CCCsf'; class B 'CCCsf'.
Maturity Stress Rating Sensitivity
CPR decrease 25%: class A-3 'Asf', class A-4 'CCCsf', class A-5 'CCCsf'; class B 'CCCsf';
CPR decrease 50%: class A-3 'Asf', class A-4 'CCCsf', class A-5 'CCCsf'; class B 'CCCsf';
IBR Usage increase 25%: class A-3 'Asf', class A-4 'Bsf', class A-5 'CCCsf'; class B 'CCCsf';
IBR Usage increase 50%: class A-3 'Asf', class A-4 'Bsf', class A-5 'CCCsf'; class B 'CCCsf';
Remaining Term increase 25%: class A-3 'Asf', class A-4 'CCCsf', class A-5 'CCCsf'; class B 'CCCsf';
Remaining Term increase 50%: class A-3 'Asf', class A-4 'CCCsf', class A-5 'CCCsf'; class B 'CCCsf'.
Access Funding 2015-1 LLC
Current Rating: - Class A - 'AAAsf'; Class B - 'AAsf'
Credit Stress Rating Sensitivity
Default increase 25%: class A 'Asf'; class B 'Asf';
Default increase 50%: class A 'Asf'; class B 'Asf';
Basis Spread increase 0.25%: class A 'AAsf'; class B 'AAsf';
Basis Spread increase 0.5%: class A 'AAsf'; class B 'AAsf'.
Maturity Stress Rating Sensitivity
CPR decrease 25%: class A 'AAAsf'; class B 'AAsf';
CPR decrease 50%: class A 'AAAsf'; class B 'AAsf';
IBR Usage increase 25%: class A 'AAAsf'; class B 'AAsf';
IBR Usage increase 50%: class A 'AAAsf'; class B 'AAsf';
Remaining Term increase 25%: class A 'AAAsf'; class B 'AAsf';
Remaining Term increase 50%: class A 'AAAsf'. class B 'AAsf'.
Factors that could, individually or collectively, lead to positive rating action/upgrade:
Credit Stress Rating Sensitivity
Default decrease 25%: class A-3 'AAAsf', class A-4 'AAAsf', class A-5 'CCCsf'; class B 'CCCsf';
Basis Spread decrease 0.25%: class A-3 'AAAsf', class A-4 'AAAsf', class A-5 'CCCsf'; class B 'CCCsf'.
Maturity Stress Rating Sensitivity
CPR increase 25%: class A-3 'AAAsf', class A-4 'Asf', class A-5 'CCCsf'; class B 'CCCsf';
IBR Usage decrease 25%: class A-3 'AAAsf', class A-4 'BBBsf', class A-5 'CCCsf'; class B 'CCCsf';
Remaining Term decrease 25%: class A-3 'AAAsf', class A-4 'AAAsf', class A-5 'CCCsf'; class B 'CCCsf'.
Access Funding 2015-1 LLC
Class A is rated 'AAAsf' and is at its highest attainable rating. Results shown below is for class B
Credit Stress Rating Sensitivity
Default decrease 25%: class B 'AAAsf';
Basis Spread decrease 0.25%: class B 'AAAsf'.
Maturity Stress Rating Sensitivity
CPR increase 25%: class B 'AAAsf';
IBR Usage decrease 25%: class B 'AAAsf';
Remaining Term decrease 25%: class B 'AAAsf'.
Best/Worst Case Rating Scenario
International scale credit ratings of Structured Finance transactions have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of seven notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of seven notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.
CRITERIA VARIATION
The rating of 'Asf' for class A-3 is more than one category lower than the lowest model implied rating of 'AAAsf'. As noted in the FFELP criteria, if the final ratings are different from the model results by more than one rating category, it would constitute a criteria variation. The rating reflects a potential slowdown in the payment rate from current macroeconomic stresses. Had Fitch not apply this variation, the notes could have been rated 'AAAsf'.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
APPLICABLE CRITERIA
Structured Finance and Covered Bonds Interest Rate Stresses Rating Criteria (pub.
Global Structured Finance Rating Criteria (pub.
Structured Finance and Covered Bonds Counterparty Rating Criteria (pub.
Structured Finance and Covered Bonds Counterparty Rating Criteria: Derivative Addendum (pub.
APPLICABLE MODELS
Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).
FFELP SL CF Model, v2.19.3 (1)
ADDITIONAL DISCLOSURES
Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS
Access Funding 2015-1 LLC EU Endorsed,UK Endorsed
Access Group, Inc. - Federal Student Loan Notes, Series 2004-2 EU Endorsed,UK Endorsed
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