Moody's upgrades the ratings of twelve classes of Sallie Mae's private student loan securitization transactions
New York, March 02, 2007 -- Moody's Investors Service upgraded the ratings of twelve classes of notes
issued in six private loan securitizations by Sallie Mae, Inc.
(SLM). The notes are collateralized by private student loans originated
or acquired by SLM Education Credit Finance Corporation, a wholly-owned
subsidiary of SLM Corporation. In light of the current structure
and the performance of the collateral pools, Moody's believes
that the available credit enhancement is sufficient to support the new
ratings. In all SLM's securitizations of private loans,
both the specified reserve account and overcollateralization are non-declining
in dollar terms, and, therefore, grow as a percentage
of the current pool balance over time.
The complete rating actions are as follows:
Issuer: SLM Private Credit Student Loan Trust 2002-A
$23,742,000 Class B Floating Rate Student Loan-Backed
Notes, upgraded to Aa3 from A1.
$34,699,000 Class C Floating Rate Student Loan-Backed
Notes, upgraded to A3 from Baa1.
Issuer: SLM Private Credit Student Loan Trust 2003-A
$ 34,570,000 Class B Floating Rate Student Loan-Backed
Notes, upgraded to Aa3 from A1.
$ 47,866,000 Class C Floating Rate Student Loan-Backed
Notes, upgraded to A3 from Baa1.
Issuer: SLM Private Credit Student Loan Trust 2003-B
$ 43,871,000 Class B Floating Rate Student Loan-Backed
Notes, upgraded to Aa3 from A1.
$ 60,744,000 Class C Floating Rate Student Loan-Backed
Notes, upgraded to A3 from Baa1.
Issuer: SLM Private Credit Student Loan Trust 2003-C
$43,965,000 Class B Floating Rate Student Loan-Backed
Notes, upgraded to Aa3 from A1.
$60,875,000 Class C Floating Rate Student Loan-Backed
Notes, upgraded to A3 from Baa1.
Issuer: SLM Private Credit Student Loan Trust 2004-A
$ 43,641,000 Class B Floating Rate Student Loan-Backed
Notes, upgraded to Aa3 from A1.
$ 60,426,000 Class C Floating Rate Student Loan-Backed
Notes, upgraded to A3 from Baa1.
Issuer: SLM Private Credit Student Loan Trust 2004-B
$ 49,242,000 Class B Floating Rate Student Loan-Backed
Notes, upgraded to Aa3 from A1.
$ 68,182,000 Class C Floating Rate Student Loan-Backed
Notes, upgraded to A3 from Baa1.
As of the December 15, 2006 distribution date, 84.62%
of the loan principal amount in the 2002-A securitization was in
repayment (excluding deferment and forbearance), and loans over
thirty days delinquent amounted to 3.38%. The pool
factor was 73.51%. Total parity, excluding
the reserve account, was 102.96%. In addition
to the overcollateralization, credit protection for the Class B
notes included the reserve account equal to 0.35% of the
outstanding liabilities and 7.04% subordination of the Class
C notes. Credit protection for the Class C notes included overcollateralization
and the reserve account. The deal also benefits from excess spread.
As of the December 15, 2006 distribution date, 77.00%
of the loan principal amount in the 2003-A securitization was in
repayment (excluding deferment and forbearance), and loans over
thirty days delinquent amounted to 3.01%. The pool
factor was 76.82%. Total parity, excluding
the reserve account, was 102.83%. In addition
to the overcollateralization, credit protection for the Class B
notes included the reserve account equal to 0.33% of the
outstanding liabilities and 6.37% subordination of the Class
C notes. Credit protection for the Class C notes included overcollateralization
and the reserve account. The deal also benefits from the excess
spread.
As of the December 15, 2006 distribution date, 72.69%
of the loan principal amount in the 2003-B securitization was in
repayment (excluding deferment and forbearance), and loans over
thirty days delinquent amounted to 3.17%. The pool
factor was 84.76%. Total parity, excluding
the reserve account, was 102.62%. In addition
to the overcollateralization, credit protection for the Class B
notes included the reserve account equal to 0.30% of the
outstanding liabilities and 5.90% subordination of the Class
C notes. Credit protection for the Class C notes included overcollateralization
and the reserve account. The deal also benefits from the excess
spread.
As of the December 15, 2006 distribution date, 73.97%
of the loan principal amount in the 2003-C securitization was in
repayment (excluding deferment and forbearance), and loans over
thirty days delinquent amounted to 3.78%. The pool
factor was 86.84%. Total parity, excluding
the reserve account, was 102.45%. In addition
to the overcollateralization, credit protection for the Class B
notes included the reserve account equal to 0.28% of the
outstanding liabilities and 5.38% subordination of the Class
C notes. Credit protection for the Class C notes included overcollateralization
and the reserve account. The deal also benefits from the excess
spread.
As of the December 15, 2006 distribution date, 71.59%
of the loan principal amount in the 2004-A securitization was in
repayment (excluding deferment and forbearance), and loans over
thirty days delinquent amounted to 4.00%. The pool
factor was 88.83%. Total parity, excluding
the reserve account, was 102.37%. In addition
to the overcollateralization, credit protection for the Class B
notes included the reserve account equal to 0.28% of the
outstanding liabilities and 5.22% subordination of the Class
C notes. Credit protection for the Class C notes included overcollateralization
and the reserve account. The deal also benefits from the excess
spread.
As of the December 15, 2006 distribution date, 58.80%
of the loan principal amount in the 2004-B securitization was in
repayment (excluding deferment and forbearance), and loans over
thirty days delinquent amounted to 2.22%. The pool
factor was 98.16%. Total parity, excluding
the reserve account, was 102.31%. In addition
to the overcollateralization, credit protection for the Class B
notes included the reserve account equal to 0.24% of the
outstanding liabilities and 5.12% subordination of the Class
C notes. Credit protection for the Class C notes included overcollateralization
and the reserve account. The deal also benefits from the excess
spread.
SLM Education Credit Finance Corporation (the Seller) is a wholly-owned
subsidiary of SLM Corporation. It is in the business of either
originating or acquiring student loans under various loan programs from
commercial banks. Sallie Mae, Inc., a wholly-owned
subsidiary of SLM Corporation, is the administrator of the trusts
and the servicer of student loans. Sallie Mae, Inc.
manages and operates the loan servicing functions for all subsidiaries
of SLM Corporation.
For more information please see www.Moodys.com.
New York
Nicolas S. Weill
Managing Director - Chief Credit Officer
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
New York
Luisa De Gaetano
Asst Vice President - Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653