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PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

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1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

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Announcement:

Moody's reviews for possible downgrade 23 notes from eleven Sallie Mae private student loan trusts

26 May 2011

Approximately $4.7 billion of asset-backed securities affected

New York, May 26, 2011 -- Moody's Investors Service has placed under review for possible downgrade 23 classes of notes from eleven SLM Private Credit Student Loan trusts sponsored, serviced and administered by Sallie Mae, Inc., a wholly-owned subsidiary of SLM Corporation. The notes that were placed under review include eighteen tranches of senior Class A notes and five tranches of subordinate notes. The underlying collateral consists of private credit student loans that are not guaranteed or reinsured under the Federal Family Education Loan Program (FFELP) or any other federal student loan program.

RATINGS RATIONALE

The review of the notes was prompted by worse than expected performance of the underlying collateral as indicated by elevated defaults and delinquencies and declines in total parity, i.e. the ratio of total assets to total liabilities, of the affected transactions. The performance evaluation of the deals was based on the adequacy of the available credit enhancement for each class of notes relative to Moody's expected loss on the remaining pool and assumed loss volatility. Credit enhancement on these transactions includes overcollateralization, reserve funds, subordination and excess spread.

Delinquencies and defaults spiked in the third quarter of 2009 as a result of a tighter forbearance policy implemented by Sallie Mae in late 2008. However, the effects of this policy change should have subsided by now. Instead, delinquencies remain at elevated levels, rolling through to higher than expected defaults, which continue to erode the parity levels for most securitizations. Although more seasoned deals issued in 2002 and 2003 should have benefited from significant seasoning and experienced a slowdown in defaults, the 30 plus days delinquency levels for these deals show little signs of improvement and remain elevated at 7-9% of active repayment. In addition, the cumulative defaults to date for these trusts are higher than expected, ranging between 10.0% and 12.3%. Total parity of 2003-A, 2003-B and 2003-C transactions declined from a range of 102.23-101.01% in May 2010 to 100.70.-99.55% in February 2011 and total parity for the post 2003-C transactions declined from a range of 102.51-100.80% to 102.45-99.85% over the same period.

During the review period, Moody's will refine the lifetime defaults for the transactions and perform cash flow analysis in order to determine the appropriate ratings.

Primary sources of uncertainty with regard to expected losses are the weak economic environment and the high unemployment rate, which adversely impacts the income-generating ability of the borrowers. Lower income levels will effectively force increasing amounts of borrowers into delinquency and default across all loan types.

The principal methodology used in these rating actions was "Moody's Approach to Rating U.S. Private Student Loan-Backed Securities" rating methodology, published on January 6th, 2010. Other methodologies and factors that may have been considered in the process of rating this issue can also be found on Moody's website.

Moody's Investors Service did not receive or take into account a third party due diligence report on the underlying assets or financial instruments in this transaction.

RATINGS

Issuer: SLM Private Credit Student Loan Trust 2002-A

Class C, A3 (sf) Placed Under Review for Possible Downgrade; previously on Mar 2, 2007 Upgraded to A3 (sf)

Issuer: SLM Private Credit Student Loan Trust 2003-A

Class A-2, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Mar 19, 2003 Assigned Aaa (sf)

Class A-3, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Mar 19, 2003 Assigned Aaa (sf)

Class A-4, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Mar 19, 2003 Assigned Aaa (sf)

Class B, Aa3 (sf) Placed Under Review for Possible Downgrade; previously on Mar 2, 2007 Upgraded to Aa3 (sf)

Class C, A3 (sf) Placed Under Review for Possible Downgrade; previously on Mar 2, 2007 Upgraded to A3 (sf)

Issuer: SLM Private Credit Student Loan Trust 2003-B

Class A-2, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Jun 26, 2003 Assigned Aaa (sf)

Class A-3, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Jun 26, 2003 Assigned Aaa (sf)

Class A-4, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Jun 26, 2003 Assigned Aaa (sf)

Class B, Aa3 (sf) Placed Under Review for Possible Downgrade; previously on Mar 2, 2007 Upgraded to Aa3 (sf)

Class C, A3 (sf) Placed Under Review for Possible Downgrade; previously on Mar 2, 2007 Upgraded to A3 (sf)

Issuer: SLM Private Credit Student Loan Trust 2003-C

Cl. A-2, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Oct 10, 2003 Assigned Aaa (sf)

Cl. A-3, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Aug 13, 2009 Confirmed at Aaa (sf)

Cl. A-4, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Aug 13, 2009 Confirmed at Aaa (sf)

Issuer: SLM Private Credit Student Loan Trust 2004-A

Cl. A-3, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Aug 13, 2009 Confirmed at Aaa (sf)

Issuer: SLM Private Credit Student Loan Trust 2005-A

Cl. A-3, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Apr 29, 2005 Definitive Rating Assigned Aaa (sf)

Issuer: SLM Private Credit Student Loan Trust 2005-B

Cl. A-2, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Oct 28, 2005 Definitive Rating Assigned Aaa (sf)

Cl. A-3, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Aug 13, 2009 Confirmed at Aaa (sf)

Issuer: SLM Private Credit Student Loan Trust 2006-A

Cl. A-4, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Apr 7, 2006 Definitive Rating Assigned Aaa (sf)

Issuer: SLM Private Credit Student Loan Trust 2006-B

Cl. A-4, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Jun 8, 2006 Definitive Rating Assigned Aaa (sf)

Issuer: SLM Private Credit Student Loan Trust 2006-C

Cl. A-4, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Sep 28, 2006 Definitive Rating Assigned Aaa (sf)

Issuer: SLM Private Credit Student Loan Trust 2007-A

Cl. A-2, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Mar 29, 2007 Definitive Rating Assigned Aaa (sf)

Cl. A-3, Aaa (sf) Placed Under Review for Possible Downgrade; previously on Mar 29, 2007 Definitive Rating Assigned Aaa (sf)

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings and confidential and proprietary Moody's Investors Service information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

Moody's Investors Service adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from reliable sources; however, Moody's Investors Service does not and cannot in every instance independently verify, audit or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

New York
Irina Faynzilberg
VP - Senior Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Jerry Lu
Senior Associate
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's reviews for possible downgrade 23 notes from eleven Sallie Mae private student loan trusts
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

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Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

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MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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