Xpress Loan Servicing

Fitch Takes Rating Actions on Xpress Loan Servicing's SLABS Servicer Ratings

Fitch Ratings has taken the following rating actions on the U.S. ABS student loan servicer ratings for Xpress Loan Servicing (XLS): --Private student loan servicer rating affirmed at 'Proficient'; --FFELP servicer rating downgraded to 'Proficient' from 'Proficient Plus'. The ratings are based on XLS' experienced management team and the financial strength of its parent, CIT Group, Inc. (Long-term IDR rated 'A-' by Fitch). XLS has serviced private consolidation loans for approximately three years and federally guaranteed student loans for four years. The downgrade is due to the uncertainty surrounding XLS' future. While CIT is still rated investment grade at 'A-', they have made clear to the market their intention to exit consumer businesses. CIT has stopped originating student loans and has been exiting consumer lending to focus solely on commercial lending. While XLS senior management team remains, they may be challenged in their ability to maintain the high service level standards previously achieved. XLS is a for profit student loan servicing subsidiary of CIT Group Inc. Servicing is performed from their Cleveland, Ohio headquarters using the Compass Servicing System which was developed by AES/PHEAA. XLS began servicing FFELP loans in 2004 and private consolidation loans in 2006. They are currently the 10th largest student loan servicer by unpaid principal balance. As of Oct. 1, 2008, XLS' serviced portfolio totaled about $9.1 billion, of which approximately $8.9 billion is federally guaranteed loans, predominantly consolidation Stafford and Plus loans. The remaining is consolidated private student loans.