(The following statement was released by the rating agency)OVERVIEW
-- NorthStar Student Loan Trust I's issuance is an ABS securitizationbacked by student loans that are at least 97% reinsured by the U.S. federalgovernment.
-- We assigned our 'AA+ (sf)' preliminary rating to the class A notes.
-- The preliminary rating reflects our view of the transaction's initialsenior parity, the U.S. government's reinsurance, interest and principalpayments, and our scenario analysis, among other factors.
NEW YORK (Standard & Poor's) Oct. 10, 2012--Standard & Poor's Ratings Servicestoday assigned its preliminary 'AA+ (sf)' rating to NorthStar Student LoanTrust I's $674.6 million class A student loan asset-backed notes series 2012-1(see list).
The note issuance is an asset-backed securitization backed by student loansthat are at least 97% reinsured by the U.S. federal government.
The preliminary rating is based on information as of Oct. 10, 2012. Subsequentinformation may result in the assignment of final ratings that differ from thepreliminary ratings.
The preliminary 'AA+ (sf)' rating reflects our view of:
-- The transaction's initial senior parity of approximately 103.51%,which is defined as the percentage of the trust assets (the pool balance, theinitial reserve fund, and the capitalized interest fund) divided by the seniornote principal amount;
-- The U.S. federal government's reinsurance of at least 97% of theloans' principal and interest;
-- The timely interest and principal payments made under stressed cashflow modeling scenarios that we believe are consistent with the assignedpreliminary 'AA+ (sf)' rating; and
-- A scenario analysis indicating that under moderately stressfuleconomic conditions (defined as 2.25x expected defaults) the rating would notdecline more than one rating category in the first year, which is consistentwith our credit stability criteria.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit ratingrelating to an asset-backed security as defined in the Rule, to include adescription of the representations, warranties and enforcement mechanismsavailable to investors and a description of how they differ from therepresentations, warranties and enforcement mechanisms in issuances of similarsecurities.
The Standard & Poor's 17g-7 Disclosure Report included in this credit ratingreport is available at "
".RELATED CRITERIA AND RESEARCHRelated criteria
-- Counterparty Risk Framework Methodology And Assumptions, May 31, 2012
-- Global Investment Criteria For Temporary Investments In TransactionAccounts, May 31, 2012
-- U.S. Interest Rate Assumptions Revised For May 2012 And Thereafter,April 30, 2012
-- U.S. Government Support In Structured Finance And Public FinanceRatings, Sept. 19, 2011
-- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
-- Methodology: Credit Stability Criteria, May 3, 2010
-- Methodology: Criteria for Global Structured Finance TransactionsSubject to a Change in Payment Priorities upon a Nonmonetary EOD, March 16,2010
-- Legal Criteria For U.S. Structured Finance Transactions: Overview OfLegal Criteria For U.S. Structured Finance Transactions, Oct. 1, 2006
-- Student Loan Criteria: Student Loan Programs, Oct. 1, 2004
-- Student Loan Criteria: The Rating Process For Student LoanTransactions, Oct. 1, 2004
-- Student Loan Criteria: Evaluating Risk In Student Loan Transactions,Oct. 1, 2004
-- Student Loan Criteria: Structural Elements In Student LoanTransactions, Oct. 1, 2004
-- Student Loan Criteria: Rating Methodology For Student LoanTransactions, Oct. 1, 2004Related research
-- Presale: NorthStar Student Loan Trust I - Series 2012-1, Oct. 10, 2012
-- Global Structured Finance Scenario And Sensitivity Analysis: TheEffects Of The Top Five Macroeconomic Factors, Nov. 4, 2011
-- United States Of America Long-Term Rating Lowered To 'AA+' OnPolitical Risks And Rising Debt Burden; Outlook Negative, Aug. 5, 2011
(New York Ratings Team)