Fitch Affirms NC Trust 2005-GATE Re-Packaging Trust

Fitch Ratings affirms the NC Trust 2005-GATE Re-Packaging Trust class A and EC certificates at 'Asf'. The Rating Outlook remains Stable.

KEY RATING DRIVERS

'Asf' Asset Quality: The rating on the certificates is linked with the rating on the underlying bond, which is currently rated by Fitch at 'Asf' with a Stable Outlook.

Simple Pass-through Structure: The repack trust is structured as a simple pass-through. The amount of interest payable is equal to interest payments received on the underlying bond net of trust expenses, which are capped at interest payments received for any related distribution date. The total parity of the repackaging trust will be constant at 100%. All of the class A and EC-1 to EC-4 certificates mature on the same date, which is two business days after the maturity date of the underlying bond. As such, the risk exposure of the repack certificates in terms of timely payment of interest and ultimately payment of principal is not more than that of the underlying bond.

Robust Performance of the Underlying Trust: Total parity of the underlying trust reached its release level of 104% in early 2012 from 97.73% at closing in June 2005. Fitch estimates the remaining defaults for the underlying trust to be 5% to 8% with a recovery rate of 30%.

Legal Structure: The underlying bond is repackaged through a true sale agreement to the repack trust from the seller. The beneficial interest of the repack trust is owned by the certificate holders.

RATING SENSITIVITIES

The ratings on the class A and EC-1 to EC-4 certificates are linked to the ratings on the underlying bond. For the underlying trust, Fitch's base case default proxy is derived primarily from historical collateral performance; actual performance may differ from the expected performance, resulting in higher loss levels or lower excess spreads than the base case. This will result in a decline in available credit enhancement and the remaining loss coverage levels available to the notes and may make certain note ratings susceptible to potential negative rating actions, depending on the extent of the decline in the coverage. Rating sensitivity results should only be considered as potential outcomes, as the transaction is exposed to multiple dynamic risk factors. Rating sensitivity results should not be used as an indicator of future rating performance.

Fitch has affirmed the following ratings:

NC Trust 2005-GATE Re-Packaging Trust:

--Class A1 certificates at 'Asf'; Outlook Stable;

--Class A2 certificates at 'Asf'; Outlook Stable;

--Class A3 certificates at 'Asf'; Outlook Stable;

--Class A4 certificates at 'Asf'; Outlook Stable;

--Class A5 certificates at 'Asf'; Outlook Stable;

--Class EC-1 certificates at 'Asf'; Outlook Stable;

--Class EC-2 certificates at 'Asf'; Outlook Stable;

--Class EC-3 certificates at 'Asf'; Outlook Stable;

--Class EC-4 certificates at 'Asf'; Outlook Stable.

A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms (RW&Es) to those of typical RW&Es for that asset class is available by accessing the appendix that accompanies the initial presale report. Please refer to 'NC Trust 2005-GATE Re-Packaging Trust -- Appendix', published on Feb. 11, 2014 at www.fitchratings.com.

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

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'U.S. Private Student Loan ABS Criteria' (Jan. 29, 2014);

--'NC Trust 2005-GATE Re-Packaging Trust -- Appendix' (Feb. 11, 2014);

--'Counterparty Criteria for Structured Finance and Covered Bonds' (May 14, 2014);

--'Representations, Warranties, and Enforcement Mechanisms in Global Structured Finance Transactions' (April 17, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. Private Student Loan ABS Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=730956

NC Trust 2005-GATE Re-Packaging Trust -- Appendix
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736136

Counterparty Criteria for Structured Finance and Covered Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Representations, Warranties and Enforcement Mechanisms in Global Structured Finance Transactions
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=799248

Additional Disclosure

Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=931657

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