Approximately $602 million of asset-backed securities affected
New York, April 07, 2017 -- Moody's Investors Service, ("Moody's") has
upgraded the ratings of eight tranches and confirmed one tranche in five
securitizations sponsored by Access Group. The underlying collateral
consists of private student loans that were extended primarily to graduate
and professional students.
The complete rating actions are as follow:
Issuer: Access Group Inc. Private Student Loan asset-Backed
Floating Rate Notes, Series 2005-B
2005-B Cl. A-3, Upgraded to Aaa; previously
on Jan 20, 2017 Aa1 Placed Under Review for Possible Upgrade
2005-B Cl. B-2, Upgraded to Ba1; previously
on Jan 20, 2017 B1 Placed Under Review for Possible Upgrade
Issuer: Access Group, Inc. Private Student Loan Asset-Backed
Floating Rate Notes, Series 2007-A
2007-A-A-3, Upgraded to Aaa; previously
on Jan 20, 2017 Aa2 Placed Under Review for Possible Upgrade
2007-A-B, Upgraded to Baa2; previously on Jan
20, 2017 Ba3 Placed Under Review for Possible Upgrade
Issuer: Access Group, Inc., Federal Student Loan
Asset-Backed Notes, Series 2001
Cl. II A-1 Group II, Confirmed at A2; previously
on Jan 20, 2017 A2 Placed Under Review for Possible Upgrade
Cl. B, Upgraded to Ba1; previously on Jan 20,
2017 B1 Placed Under Review for Possible Upgrade
Issuer: Access Group, Inc., Private Student Loan
Asset-Backed Floating Rate Notes, Series 2005-A
2005-A-A-3, Upgraded to Aa3; previously
on Jan 20, 2017 A3 Placed Under Review for Possible Upgrade
2005-A-B-1, Upgraded to Ba2; previously
on Jan 20, 2017 B3 Placed Under Review for Possible Upgrade
Issuer: Access Group, Inc., Series 2003-A
Senior Ser. 2003-A Cl. B, Upgraded to Ba3;
previously on Jan 20, 2017 B1 Placed Under Review for Possible Upgrade
RATINGS RATIONALE
The rating actions are a result of a continued build-up in overcollateralization
as a result of lower than expected defaults. Additionally,
the top-pay senior classes have benefitted from the rapid deleveraging
due to the substantial pay down of the classes in a sequential-pay
structure.
PRINCIPAL METHODOLOGY
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 Rating Methodologies
page on www.moodys.com for a copy of this methodology.
On 22 March 2017, Moody's released a Request for Comment,
in which it has requested market feedback on potential revisions to its
"Approach to Assessing Counterparty Risks in Structured Finance".
If the revised Methodology is implemented as proposed, the Credit
Ratings on Access Group, Inc., Federal Student Loan
Asset-Backed Notes, Series 2001, Access Group,
Inc., Series 2003-A, Access Group, Inc.,
Private Student Loan Asset-Backed Floating Rate Notes, Series
2005-A, Access Group Inc. Private Student Loan asset-Backed
Floating Rate Notes, Series 2005-B and Access Group,
Inc. Private Student Loan Asset-Backed Floating Rate Notes,
Series 2007-A are not expected to be affected. Please refer
to Moody's Request for Comment, titled " Moody's Proposes
Revisions to Its Approach to Assessing Counterparty Risks in Structured
Finance," for further details regarding the implications of
the proposed Methodology revisions on certain Credit Ratings.
Factors that would lead to an upgrade or downgrade of the ratings:
Up
Among the factors that could drive the ratings up are a decrease in defaults
rates, higher recoveries on defaulted loans and/or lower net losses
on the underlying assets than Moody's expects.
Down
Among the factors that could drive the ratings down are an increase in
defaults rates, lower recoveries on defaulted loans and/or higher
net losses on the underlying assets than Moody's expects.
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 quantitative analysis entails an evaluation of scenarios
that stress factors contributing to sensitivity of ratings and take into
account the likelihood of severe collateral losses or impaired cash flows.
Moody's weights the impact on the rated instruments based on its
assumptions of the likelihood of the events in such scenarios occurring.
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 credit rating action on the support provider and in relation to
each particular credit 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 credit rating action,
and whose ratings may change as a result of this credit 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.
Vincent Raia
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
Kruti Muni
Associate Managing Director
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