OREANDA-NEWS. Fitch Ratings affirms the Rhode Island Student Loan Authority Series 2012-1 (RISLA 2012-1) student loan notes at 'AAAsf'. The Rating Outlook remains Stable.

KEY RATING DRIVERS
High Collateral Quality: The trust collateral consists of 100% Federal Family Education Loan Program (FFELP) loans. 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. sovereign rating 'AAA' with a Stable Outlook.

Sufficient Credit Enhancement is provided by overcollateralization and excess spread. As of the May 2015 report, reported parity is 107.71%. This is a turbo structure; therefore, no excess cash is released and instead used to pay down the notes.

Adequate Liquidity Support is provided by a reserve account sized at the greater of $250,000 or 0.25% of the outstanding notes, currently sized at $250,000 as of May 2015.

Acceptable Servicing Capabilities is provided by Nelnet Servicing, LLC. Fitch believes Nelnet Servicing, LLC to be and 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 build-up of CE driven by positive excess spread given favourable basis factor conditions could lead to future upgrades.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

Fitch has affirmed the following rating:

Rhode Island Student Loan Authority Series 2012-1:
--Series 2012-1 at 'AAAsf; Outlook Stable.