Approximately $240 million of asset-backed securities affected.
New York, November 04, 2014 -- Moody's Investors Service has placed on review for upgrade four classes
of notes issued in the 2002-A and 2003-A student loan securitizations
sponsored by Key Bank National Association. Although the securitizations
had originally included both loans originated under the Federal Family
Education Loan Program (FFELP) and private student loans, which
are not guaranteed or reinsured by the Federal government, all FFELP
loans and the corresponding notes have paid off.
The complete rating actions are as follows:
Issuer: KeyCorp Student Loan Trust 2002-A
Class II-A-2, Baa3 (sf) Placed Under Review for Possible
Upgrade; previously on Apr 13, 2009 Downgraded to Baa3 (sf)
Issuer: KeyCorp Student Loan Trust 2003-A
Cl. II-A-IO, Aa1 (sf) Placed Under Review for
Possible Upgrade; previously on Nov 1, 2010 Downgraded to Aa1
(sf)
Cl. II-A-3, Aa1 (sf) Placed Under Review for
Possible Upgrade; previously on Nov 1, 2010 Downgraded to Aa1
(sf)
Cl. II-B, Baa3 (sf) Placed Under Review for Possible
Upgrade; previously on Nov 1, 2010 Downgraded to Baa3 (sf)
RATINGS RATIONALE
The reviews are a result of a build-up in overcollateralization,
since the transactions are using all available excess spread to pay down
the outstanding securities. Over the 12 months ending on July 31,
2014, and September 31, 2014, for the 2002-A
and 2003-A securitizations, respectively, the ratios
of total assets to total liabilities have increased by approximately 2%
to 107.8% for the 2002-A securitization, and
approximately 3.5% to 116% for the 2003-A
securitization. The transactions are generating approximately 2%
excess spread per year, which is contributing to their deleveraging
and growth in overcollateralization.
The principal methodology used in these ratings was "Moody's Approach
to Rating U.S. Private Student Loan-Backed Securities"
published in January 2010. Please see the Credit Policy page on
www.moodys.com for a copy of of this methodology.
The performance expectations for a given variable indicate Moody's forward-looking
view of the likely range of performance over the medium term. From
time to time, Moody's may, if warranted, change these
expectations. Performance that falls outside the given range may
indicate that the collateral's credit quality is stronger or weaker than
Moody's had anticipated when the related securities ratings were issued.
Even so, a deviation from the expected range will not necessarily
result in a rating action nor does performance within expectations preclude
such actions. The decision to take (or not take) a rating action
is dependent on an assessment of a range of factors including, but
not exclusively, the performance metrics.
Factors that would lead to an upgrade or downgrade of the rating:
Up
Ratings could be further upgraded in the future upon either a decrease
in the remaining net losses or an increase in excess spread as a result
of an interest rate basis mismatch between the assets and the liabilities
of the trusts.
Down
Ratings could be downgraded in the future upon either an increase in the
remaining net losses or a reduction in excess spread as a result of an
interest rate basis mismatch between the assets and the liabilities of
the trusts.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions of the disclosure form.
Moody's did not receive or take into account a third party assessment
on the due diligence performed regarding the underlying assets or financial
instruments related to the monitoring of these transactions in the past
six months.
Moody's did not use any models, or loss or cash flow analysis,
in its analysis.
Moody's did not use any stress scenario simulations in its analysis.
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the rating action on the support provider and in relation to each particular
rating action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt,
in each case where the transaction structure and terms have not changed
prior to the assignment of the definitive rating in a manner that would
have affected the rating. For further information please see the
ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this rating action, and
whose ratings may change as a result of this rating action, the
associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Haksun Kim
Associate Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Irina Faynzilberg
VP - Sr Credit Officer/Manager
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's reviews for upgrade two Key Corp's private student loan ABS