Fitch Affirms & Removes from Watch Negative 3 Student Loan ABS Trusts Related to PPHEA & 1 to PPSFC

Fitch Ratings affirms and removes from Rating Watch Negative all the ratings on PPHEA - 2000 AHEA-1 Indenture (fka Abilene HEA 1993 Trust) (TX), PPHEA - Amended Amended and Restated 2003 Trust Indenture (1991 AB Trust) (TX), PPHEA - Restated 1999 Indenture Trust (1993 CDE Trust)(TX), and PPSFC - SFC 2001 Trust Indenture (TX). In addition, Rating Outlooks have been assigned. Fitch used its 'Global Structured Finance Rating Criteria', 'U.S. Private SL ABS Criteria' and 'FFELP Student Loan ABS Rating Criteria, as well as the refined basis risk criteria outlined in Fitch's June 29, 2010 press release 'Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria' to review the ratings. A full ratings list is shown at the end of this press release.

The notes are affirmed based on the sufficient level of credit enhancement (consisting of overcollateralization and the projected minimum excess spread) to cover the applicable risk factor stresses. For the ratings on the senior notes of the Abilene and 1991 AB Indenture Trust, a qualitative adjustment was applied to account for the expected increase in the senior parity as the transaction pay down. The affirmation is also based on the recent execution of the backup administration agreement, which addresses operational risk concerns. The subordinated notes are assigned Positive Outlooks to reflect the upward parity trend the trusts are experiencing and the possible upgrade in the future.

For the PPSFC Indenture Trust with private student loans, Fitch conducted a review of the collateral performance that involved the calculation of loss coverage multiples based on the most recent data. A projected net loss amount was compared to available credit enhancement to determine the loss multiples. Fitch used historical vintage loss data provided by the issuer to form a loss timing curve representative of the private student loan collateral pool. After giving credit for seasoning of loans in repayment, Fitch applied the current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the remaining life for the trust. A recovery rate was applied, which was determined to be appropriated based on the latest data provided by the issuer. In addition, Fitch assumed excess spread to be the lesser of the current annualized excess spread; the average historical excess spread; and the most recent 12-month average excess spread, and applied that same rate over the remaining life. Basis risk stresses were also applied to account for the risk associated with the auction rate securities.

For the trusts with tax-exempt auction rate securities, the net excess spread assumptions applied to the subordinate bonds were subject to an additional stress multiplier to account for the potential incremental volatility associated with the indices used.

Fitch has affirmed, removed from Rating Watch Negative and assigned Outlooks as follows:

Panhandle-Plains Higher Education Authority, Inc. - 2000 AHEA-1 Indenture (fka Abilene HEA 1993 Trust) (TX):

-- Senior series 1995B at 'AAA/LS-1' Outlook Stable;

-- Senior series 1997A at 'AAA/LS-1' Outlook Stable;

-- Senior series 1998A at 'AAA/LS-1' Outlook Stable;

-- Senior series 2002A-1 at 'AAA/LS-1' Outlook Stable;

-- Senior series 2005A-3 at 'AAA/LS-1' Outlook Stable;

-- Subordinate series 1998B at 'A/LS-3' Outlook Positive.

Panhandle-Plains Higher Education Authority, Inc. - Amended and Restated 1999 Indenture Trust (1993 CDE Trust) (TX):

-- Senior series 1999A-1 at 'AAA/LS-1' Outlook Stable;

-- Senior series 2001A-1 at 'AAA/LS-1' Outlook Stable;

-- Senior series 2001A-3 at 'AAA/LS-1' Outlook Stable;

-- Senior series 2001A-4 at 'AAA/LS-1' Outlook Stable;

-- Senior series 2001A-5 at 'AAA/LS-1' Outlook Stable;

-- Subordinate series 2001B-1 at 'A/LS-3' Outlook Positive;

-- Subordinate series 2001B-2 at 'A/LS-3' Outlook Positive.

Panhandle-Plains Higher Education Authority, Inc. - Amended and Restated 2003 Trust Indenture (1991 AB Trust) (TX):

--Senior series 2003 A-1 at 'AAA/LS-1' Outlook Stable;

--Senior series 2003 A-2 at 'AAA/LS-1' Outlook Stable;

--Senior series 2003 A-3 at 'AAA/LS-1' Outlook Stable;

--Subordinate series 2003 B-1 at 'A/LS-3' Outlook Positive;

--Senior series 2004 A-1 at 'AAA/LS-1' Outlook Stable;

--Senior series 2004 A-2 at 'AAA/LS-1' Outlook Stable;

--Senior series 2004 A-3 at 'AAA/LS-1' Outlook Stable;

--Senior series 2004 A-4 at 'AAA/LS-1' Outlook Stable;

--Senior series 2005 A-1 at 'AAA/LS-1' Outlook Stable;

--Senior series 2005 A-2 at 'AAA/LS-1' Outlook Stable;

--Senior series 2005 A-4 at 'AAA/LS-1' Outlook Stable;

--Senior series 2005 A-5 at 'AAA/LS-1' Outlook Stable;

--Senior series 2006 A-1 at 'AAA/LS-1' Outlook Stable;

--Senior series 2007 A-1 at 'AAA/LS-1' Outlook Stable;

--Senior series 2007 A-2 at 'AAA/LS-1' Outlook Stable;

--Senior series 2007 A-3 at 'AAA/LS-1' Outlook Stable;

--Senior series 2007 A-4 at 'AAA/LS-1' Outlook Stable;

--Senior series 2007 A-5 at 'AAA/LS-1' Outlook Stable;

--Senior series 2007 A-6 at 'AAA/LS-1' Outlook Stable;

--Senior series 2007 A-7 at 'AAA/LS-1' Outlook Stable.

Panhandle-Plains Student Finance Corporation - SFC 2001 Trust Indenture (TX):

-- Senior series 2001 A-1 at 'AAA/LS-1' Outlook Stable;

-- Senior series 2001 A-2 at 'AAA/LS-1' Outlook Stable;

-- Subordinate series 2001 B-1 at 'A/LS-3'Outlook Positive.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated Aug. 13, 2010;

--'Rating US Federal Family Education Loan Program Student Loan ABS Criteria' dated April 11, 2008;

--'Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria' dated June 29, 2010.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326

Rating US Federal Family Education Loan Program Student Loan ABS Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=382306

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SOURCE: Fitch Ratings