Fitch Affirms Massachusetts Educational Financing Authority Series 2008; Outlook Stable

  Fitch Affirms Massachusetts Educational Financing Authority Series 2008;   Outlook Stable  Business Wire  NEW YORK -- June 11, 2014  Fitch Ratings affirms the senior notes at 'AAAsf' issued by Massachusetts Educational Financing Authority Series 2008. The Rating Outlook remains Stable.  KEY RATING DRIVERS  High Collateral Quality: The collateral consists of 100% Federal Family Education Loan Program (FFELP) loans. The credit quality of the trust collateral is high, in Fitch's opinion, based on the guarantees provided by the transaction's eligible guarantors and reinsurance provided by the U.S. Department of Education (ED) for at least 97% of principal and accrued interest. Fitch currently rates the U.S. 'AAA' with a Stable Outlook.  Sufficient Credit Enhancement (CE): Credit enhancement (CE) is provided by overcollateralization (OC; the excess of trust's asset balance over bond balance) and excess spread. As of April 2014, senior parity is 106.48% which is slightly above its cash release level of 106%.  Adequate Liquidity Support: Liquidity support is provided by a debt service reserve fund sized and maintained at 0.25% of the initial pool balance for the life of this transaction at $753,927.  Acceptable Servicing Capabilities: Affiliated Computer Services, Inc (ACS), a subsidiary of Xerox Corporation is responsible for the day-to-day servicing of the loans in the trust. In Fitch's opinion, they are an acceptable servicer of FFELP student loans.  RATING SENSITIVITIES  Since the FFELP student loan ABS relies 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 CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades.  Fitch has affirmed the following ratings:  Massachusetts Educational Financing Authority Series 2008:  --Class A at 'AAAsf'; Outlook Stable.  Additional information is available at ''.  Applicable Criteria and Related Research:  --'Global Structured Finance Rating Criteria' (May 20, 2014);  --'Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria' (May 17, 2013).  Applicable Criteria and Related Research:  Global Structured Finance Rating Criteria  Rating U.S. Federal Family Education Loan Program Student Loan ABS Criteria  Additional Disclosure  Solicitation Status  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 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.  Contact:  Fitch Ratings Primary Analyst Emily Lee Director +1 212-908-0667 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 or Committee Chairperson Tracy Wan Senior Director +1 212-908-9171 or Media Relations, New York Sandro Scenga, +1 212-908-0278