Fitch Affirms Nine Series of NCUA Guaranteed Notes Trust

CHICAGO--()--Fitch Ratings has affirmed the notes issued by nine series of NCUA Guaranteed Notes Trust as follows:

NCUA Guaranteed Notes Trust 2010-A1

-- $833,682,144 senior notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2010-C1

-- $495,850,170 A1 notes at 'AAAsf', Outlook Negative;

-- $1,360,800,000 A2 notes at 'AAAsf', Outlook Negative;

-- $1,679,826,345 A-PT notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2010-R1

-- $2,255,110,202 senior I-A notes at 'AAAsf', Outlook Negative;

-- $264,830,582 senior II-A notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2010-R3

-- $1,342,048,999 senior I-A notes at 'AAAsf', Outlook Negative;

-- $1,368,703,431 senior II-A notes at 'AAAsf', Outlook Negative;

-- $234,750,645 senior III-A notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2011-C1

-- $156,161,302 senior I-A notes at 'AAAsf', Outlook Negative;

-- $449,822,340 senior II-A notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2011-R2

-- $1,000,892,644 senior notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2011-R4

-- $948,058,517 senior notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2011-R5

-- $704,962,754 senior notes at 'AAAsf', Outlook Negative.

NCUA Guaranteed Notes Trust 2011-R6

-- $481,681,195 senior notes at 'AAAsf', Outlook Negative.

The ratings for all classes of notes are based on the guaranty agreements between the National Credit Union Association (NCUA) and the issuer of each series. NCUA guarantees the timely payment of interest and principal when due and payable up to and including the legal final maturity date for each series. The NCUA's obligations under the guaranty agreements are backed by the full faith and credit of the United States of America (the U.S. government; rated 'AAA/F1+' with a Negative Outlook by Fitch). The ratings of the notes for each series are therefore credit-linked to the rating of the U.S. government.

Proceeds from the issuance of the notes and the owner trust certificates were used to purchase a portfolio of student loan asset-backed securities (series 2010-A1), commercial mortgage-backed securities (series 2010-C1 and 2011-C1) or residential mortgage-backed securities (series 2010-R1, 2010-R3, 2011-R2, 2011-R4, 2011-R5 and 2011-R6). The portfolio assets were previously owned by credit unions taken into conservatorship by the NCUA board since March 2009.

NCUA, which is unrated, provides a full and unconditional guaranty of timely payment of interest and any due principal to the notes. If funds collected from the underlying collateral are insufficient to satisfy periodic interest and any due principal payments, the indenture trustee will notify NCUA of the amount of the shortfall prior to the related payment date. A guaranty payment will then be made by NCUA to the indenture trustee in an amount equal to the related interest and/or principal shortfall. Fitch considers the performance of the notes to be highly dependent on the NCUA's ability to make timely payments of its obligations under the guaranty agreements. In Fitch's opinion, the NCUA has the appropriate operational and financial capacities to fulfill its obligations under the guaranty agreements.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

The sources of information used to assess this rating were the trustee reports and the public domain.

Applicable Criteria & Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'Counterparty Criteria for Structured Finance Transactions' (May 30, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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Contacts

Fitch Ratings
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Aaron Hughes, +1 312-368-2074
Director
Fitch, Inc.
70 West Madison Street
Chicago, IL 60602
or
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Derek Miller, +1 312-368-2076
Senior Director
or
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