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TMCNet:  Fitch Affirms SLM Private Education Loan Trust 2013-B

[April 21, 2014]

Fitch Affirms SLM Private Education Loan Trust 2013-B

NEW YORK --(Business Wire)--

Fitch Ratings affirms the ratings of the senior and subordinate notes issued by SLM Private Education Loan Trust 2013-B. The Rating Outlook remains Stable.

A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

Collateral Quality: The trust is collateralized by approximately $1.3 billion of private student loans as of February 2014 and consists of credit-tested private student loans originated under SLM's private student loan programs and underwritten to the respective guidelines. the weighted average Fair Isaac Corp. (FICO) score at origination was 740; 95% of the loans in the pool were made to four-year schools, and 80% of the loans in the pool were co-signed. Fitch projected remaining defaults to range between 9%-11% as of the current principal balance based on data provided by SLM. A recovery rate of 10% was applied which was determined to be appropriate based on data provided by the issuer.

Sufficient Credit Enhancement (CE): CE is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. Class A notes benefits from subordination provided by the class B notes. As of February 2014, senior and total parity ratio is at 136.64% and 121.79%, respectively. The trust currently cannot release any excess cash until it reaches its specified OC amount, which is the greater of 40% of the Pool Balance and $13,063,940.

Adequate Liquidity Support: Liquidity support is provided by a reserve account sized at approximately $3.27 million.

Satisfactory Servicing Capabilities: Day-to-day servicing is provided by Sallie Mae Servicing, L.P. Fitch believes the servicing operations are satisfactory at this time.

RATING SENSITIVITIES

As Fitch's base case default proxy is derived primarily from historical collateral performance, actual performance may differ from the expected performance, resulting in higher loss levels than the base case. This will result in a decline in CE and remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in coverage. Fitch will continue to monitor the performance of the trust.

Fitch affirms the following ratings:

SLM Private Education Loan Trust 2013-B:

--Class A-1 at 'AAAsf'; Outlook Stable;
--Class A-2A at 'AAAsf'; Outlook Stable;
--Class A-2B at 'AAAsf'; Outlook Stable;
--Class B at 'Asf'; Outlook Stable.

Additional information is available at 'www.fitchratings.com'.


Applicable Criteria and Related Research:
--'U.S. Private Student Loan ABS (News - Alert) Criteria', Jan 29, 2014;
--'Global Structured Finance Rating Criteria', May 24, 2013;
--'SLM Private Education Loan Trust 2013-B (US ABS), April 23, 2013.

A comparison of the transaction's RW&Es to those of typical RW&Es for student loans is available by accessing the reports and links below:

--SLM Private Education Loan Trust 2013-B -- Appendix' dated April 23, 2013;
--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance
Transactions - Amended', dated April 17, 2012.

Applicable Criteria and Related Research:
U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661
SLM Private Education Loan Trust 2013-B (US ABS)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706656
SLM Private Education Loan Trust 2013-B -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706818
Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions -- Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676496

Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=827340
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.


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