Fitch Rates SLM Student Loan Trust 2013-3

  Fitch Rates SLM Student Loan Trust 2013-3

Business Wire

NEW YORK -- June 20, 2013

Fitch Ratings has assigned ratings to SLM Student Loan Trust 2013-3 as
follows:

--$262,000,000 Floating Rate Class A1 Notes, 'AAAsf'; Outlook Negative;

--$315,000,000 Floating Rate Class A2 Notes, 'AAAsf'; Outlook Negative;

--$634,000,000 Floating Rate Class A3 Notes 'AAAsf'; Outlook Negative;

--$35,000,000 Floating Rate Class B Notes 'A+sf'; Outlook Stable.

KEY RATING DRIVERS

High Collateral Quality: The trust collateral consists of 100% FFELP student
loans with guaranties provided by the transaction's eligible guarantors for at
least 97% of principal and accrued interest, and the reinsurance provided by
the U.S. Department of Education (ED).

Sufficient Credit Enhancement (CE): Cash flow scenarios for the class A and B
notes were satisfactory under Fitch's stresses. At closing, total parity is
expected to be 100.82% and senior parity is expected to be 103.74%. Total
credit enhancement (CE) is provided by overcollateralization (OC; about $10.24
million at closing), excess spread, and, in the case of class A notes, 2.79%
subordination provided by the class B notes.

Adequate Liquidity Support: Liquidity support for the SLM 2013-3 notes is
provided by a $6.25 million reserve account (0.50% of outstanding notes),
funded at closing with note proceeds.

Satisfactory Servicing Capabilities: Sallie Mae, Inc., as servicer, will be
responsible for servicing the 2013-3 portfolio. Fitch believes Sallie Mae is
an acceptable servicer of FFELP student loans.

Negative Rating Outlooks Assigned: Fitch's Rating Outlook for all existing and
new issuances of 'AAAsf' rated tranches of FFELP securitizations remains
Negative, which reflects Fitch's Negative Rating Outlook on the long-term
foreign and local currency issuer default ratings (IDRs) of the U.S.

RATING SENSITIVITY

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.

Key Rating Drivers and Rating Sensitivities are further described in the
pre-sale report titled 'SLM Student Loan Trust 2013-3', dated June 10, 2013,
available on www.fitchratings.com.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'Rating U.S. Federal Family Education Loan Program Student Loan ABS
Criteria' (May 17, 2013).

--'SLM Student Loan Trust 2013-3' (June 10, 2013)

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708795

SLM Student Loan Trust 2013-3

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=709969

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=794183

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Contact:

Fitch Ratings
Primary Analyst:
Charlene M. Davis, +1-212-908-00213
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson:
Tracy Wan, +1-212-908-9171
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
sandro.scenga@fitchratings.com
 
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