Press Release

DBRS Places NextStudent Master Trust I Under Review with Negative Implications

Student Loans
February 06, 2009

DBRS has today placed all 25 classes of auction-rate notes issued by NextStudent Master Trust I (the Trust) Under Review with Negative Implications.

The classes have been placed Under Review with Negative Implications as a result of the recent Notice of Defaults (the Default Notice), dated November 28, 2008, and Notice of Master Servicer and Administrator Default and Termination (the Termination Notice), dated January 28, 2009, pertaining to the Trust.

The Default Notice was issued by the Indenture Trustee due to the failure of NextStudent Inc. (NextStudent) to remit timely payment of approximately $14.1 million to the U.S. Department of Education (the ED) for the payment of certain rebate fees associated with the origination of consolidation loans under the Federal Family Education Loan Program (FFELP). The Termination Notice was issued by the holders of more than 25% of outstanding notes in response to the actions described in the Default Notice referring to NextStudent as the Master Servicer, as Administrator and as Deposit Administrator following the Default Notice.

Following conversations with NextStudent and the Indenture Trustee, Deutsche Bank Trust Company Americas, DBRS is placing the ratings Under Review with Negative Implications while the parties negotiate the selection of a permanent replacement Master Servicer, Administrator and Deposit Administrator. At that time, DBRS will assess the quality of the successor parties and any changes to the administrator and master servicing fees to determine if they will have a negative impact on the trust. DBRS expects the selection to occur within the next 30 business days and will, at that time, either confirm or downgrade the current existing ratings.

Please see the related DBRS press release published today commenting on student loan ABS and auction-rate securities.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is FFELP Student Loan ABS Criteria, which can be found on our website under Methodologies.

This is a Structured Finance rating.

Ratings

  • Date IssuedDebt RatedRatingTrendActionAttributesi
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-1 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-2 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-3 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-4 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-5 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-6 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-7 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006A-8 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-1 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-10AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-11AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-12AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-13AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-14AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-15AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-2 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-3AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-4 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-5 AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-6AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-7AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-8AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007A-9AAA (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2006-1, Series 2006B-1 A (sf)--UR-Neg.
    US
    06-Feb-09Auction Rate Student Loan-Backed Notes, Series 2007-1, Series 2007B-1 A (sf)--UR-Neg.
    US
    More
    Less
NextStudent Master Trust I
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:AAA (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:A (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • Date Issued:Feb 6, 2009
  • Rating Action:UR-Neg.
  • Ratings:A (sf)
  • Trend:--
  • Rating Recovery:
  • Issued:US
  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

ALL MORNINGSTAR DBRS RATINGS ARE SUBJECT TO DISCLAIMERS AND CERTAIN LIMITATIONS. PLEASE READ THESE DISCLAIMERS AND LIMITATIONS AND ADDITIONAL INFORMATION REGARDING MORNINGSTAR DBRS RATINGS, INCLUDING DEFINITIONS, POLICIES, RATING SCALES AND METHODOLOGIES.

Related Documents

Methodology Used:

Issuers

Contacts

  • Claire Mezzanotte
    Group Managing Director, Global Head of Structured Finance Ratings - Credit Ratings Leadership
    +(1) 212 806 3272
  • David Hartung
    Senior Vice President - Structured Finance - ABS
    +1 212 806 3269

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