DBRS Assigns Ratings to Brazos Higher Education Authority, Inc., Series 2011-1

DBRS, Inc. (DBRS) assigned ratings to the following classes of notes (the Class B Notes) issued by Brazos Higher Education Authority, Inc., Student Loan Asset-Backed Notes Series 2011-1 (Brazos 2011-1):

-- $23,900,000 Class B-1 Notes rated BBB (low) (sf)
-- $15,000,000 Class B-2 Notes rated BBB (low) (sf)
-- $11,000,000 Class B-3 Notes rated BBB (low) (sf)
-- $25,000,000 Class B-4 Notes rated BBB (low) (sf)
-- $24,100,000 Class B-5 Notes rated BBB (low) (sf)

The ratings are based on a review by DBRS of the following analytical considerations:

-- The transaction’s form and sufficiency of available credit enhancement.
-- The ability of the transaction to withstand stressed cash flow assumptions and repay the Class B Notes in accordance with the terms of the Brazos 2011-1 transaction documents.
-- The sequential-pay structure.
-- Structural features of the transaction that may require funds that would otherwise pay Class B Note interest to pay Class A-2 or Class A-3 principal, as applicable.
-- The possible discontinuation of LIBOR and related fallback language in the transaction legal documents.
-- The ability of the servicers to perform collections on the collateral pool and other required activities.
-- The legal structure and legal opinions that addresses the perfection of the security interests in the trust estate and the consistency with the DBRS “Legal Criteria for U.S. Structured Finance.”

The collateral securing Brazos 2011-1 consists of seasoned student loans originated pursuant to the Federal Family Education Loan Program, which are ultimately guaranteed by the U.S. Department of Education for at least 97% of principal plus accrued interest. The majority of the trust student loans are currently being serviced by Pennsylvania Higher Education Assistance Agency.

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

The principal methodology is Rating U.S. Federal Family Education Loan Program Securitizations, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

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