...This criteria exposure draft describes Fitch Ratings' proposed changes and overall approach to rating securities backed by Federal Family Education Loan Program (FFELP) loans. The major criteria changes Fitch is proposing include new assumptions and stresses for deferment, forbearance, prepayments, default timing and income-based repayment (IBR) plan status. Fitch is also proposing a new surveillance application methodology for outstanding transactions as described herein on pages 2 and 3. The proposed changes stem from an observed slowdown in payment rates that is placing existing FFELP ABS at higher risk of missing stated maturity dates. Despite the payment slowdown, Fitch expects existing FFELP ABS bondholders will ultimately receive full repayment of principal and interest. This criteria revision attempts to better address the risk of timely repayment by stated maturity dates for existing and future FFELP ABS transactions. Fitch invites feedback from market participants on the proposed...
