Fitch Affirms Multiple SLM Student Loan Trusts

  Fitch Affirms Multiple SLM Student Loan Trusts

Business Wire

NEW YORK -- April 16, 2013

Fitch Ratings affirms the senior and subordinate notes issued by SLM Student
Loan Trust 2004-2, SLM Student Loan Trust 2004-5, SLM Student Loan Trust
2004-8 and SLM Student Loan Trust 2004-10. The Rating Outlook on the senior
notes, which is tied to the sovereign rating of the U.S. government, remains
Negative, while the Rating Outlook on the subordinate notes is revised to
Positive from Stable. Fitch used its 'Global Structured Finance Rating
Criteria', and 'Rating U.S. Federal Family Education Loan Program Student Loan
ABS' to review the ratings.

Key Rating Drivers

The ratings on the senior and subordinate notes are affirmed based on the
sufficient level of credit to cover the applicable risk factor stresses.
Credit enhancement for the senior and subordinate notes consists of
overcollateralization and projected minimum excess spread, while the senior
notes also benefit from subordination provided by the class B note. The
revision of the Outlook to Positive from Stable for the subordinate notes is
due to the fact that all aforementioned trusts have had stable performance
since deal closing, and the subordinate notes have been receiving principal
payment since their respective step-down dates. Additionally, once the pool
factors reach 40%, the reserve accounts will be excluded from Sallie Mae's
parity calculations for each trust, creating additional credit enhancement for
the subordinate notes.

Rating Sensitivities

Since FFELP student loan ABS rely on the U.S. government to reimburse
defaults, 'AAAsf' FFELP ABS ratings will likely move in tandem with the 'AAA'
U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and
basis risk account for the majority of the risk embedded in FFELP student loan
transactions. Additional defaults and basis shock beyond Fitch's published
stresses could result in future downgrades. Likewise, a buildup of credit
enhancement driven by positive excess spread given favorable basis factor
conditions could lead to future upgrades.

Fitch has taken the following rating actions:

SLM Student Loan Trust 2004-2:

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class A-5 affirmed at 'AAAsf'; Outlook Negative;

--Class A-6 affirmed at 'AAAsf'; Outlook Negative;

--Class B affirmed at 'BBsf'; Outlook revised to Positive from Stable.

SLM Student Loan Trust 2004-5:

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class A-5 affirmed at 'AAAsf'; Outlook Negative;

--Class A-6 affirmed at 'AAAsf'; Outlook Negative;

--Class B affirmed at 'BBsf'; Outlook revised to Positive from Stable.

SLM Student Loan Trust 2004-8:

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class A-5 affirmed at 'AAAsf'; Outlook Negative;

--Class A-6 affirmed at 'AAAsf'; Outlook Negative;

--Class B affirmed at 'BBsf'; Outlook revised to Positive from Stable.

SLM Student Loan Trust 2004-10:

--Class A-4 affirmed at 'AAAsf'; Outlook Negative;

--Class A-5A affirmed at 'AAAsf'; Outlook Negative;

--Class A-5B affirmed at 'AAAsf'; Outlook Negative;

--Class A-6A affirmed at 'AAAsf'; Outlook Negative;

--Class A-6B affirmed at 'AAAsf'; Outlook Negative;

--Class A-7A affirmed at 'AAAsf'; Outlook Negative;

--Class A-7B affirmed at 'AAAsf'; Outlook Negative;

--Class A-8 affirmed at 'AAAsf'; Outlook Negative;

--Class B affirmed at 'BBsf'; Outlook revised to Positive from Stable.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated June 6, 2012;

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS
Criteria' dated April 1, 2013.

Applicable Criteria and Related Research

Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704322

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=788730

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Contact:

Fitch Ratings
Primary Analyst:
Victoria Ohorodnyk, +1-212-908-0866
Analyst
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Tracy Wan, +1-212-908-9171
Senior Director
or
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Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com