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 'www.fitchratings.com'.

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748821

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=834194

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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
sandro.scenga@fitchratings.com
 
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