Updated February 23 at 11:56am
1/14/09 03:58PM

RI Student Loan Bonds Affirmed at AAA

RI Student Loan Bonds Affirmed at AAA The Fitch Rating Agency has affirmed the AAA rating of the Rhode Island Student Loan Authority (RISLA) 1993 senior bonds. These bonds total …

RI Student Loan Bonds Affirmed at AAA

The Fitch Rating Agency has affirmed the AAA rating of the Rhode Island Student Loan Authority (RISLA) 1993 senior bonds. These bonds total $49,645,000 and the proceeds are used to finance federal and private education loans.

Charles P. Kelley, Executive Director of RISLA, said that “RISLA is very pleased that a major rating agency has publicly reaffirmed our AAA ratings. This allows RISLA to provide low cost education loans to deserving students. In these difficult economic times, a AAA rating is a significant achievement.”

Students can apply online for a federal or private education loan with the Rhode Island Student Loan Authority at www.risla.com or by calling 800.758.7562.

Before applying for alternative/private loans, consumers should fully explore their eligibility for federal financial assistance, including federal loans.

About RISLA - The Rhode Island Student Loan Authority (RISLA), a non-profit quasi-state authority, provides affordable higher education loans. Since 1981, the Authority has provided over 200,000 loans, helping more than 100,000 students achieve the education that they deserve. RISLA also provides free admissions and financial aid assistance through the College Planning Center of Rhode Island (CPCRI), conveniently located at the Warwick Mall and the Bell Tower Plaza in Bristol. CPCRI provides one-on-one counseling to families, assistance with admissions and financial aid applications, and seminars on financial aid to help students and parents achieve the education of their dreams.


(from Press Release on Fitch Ratings website 1/7/2009)

Fitch Ratings has affirmed five classes from the student loan program revenue bonds issued by Rhode Island Student Loan Authority 1993 Master Trust. The actions follow a review of the trust collateral performance taken in conjunction with Fitch's ongoing review of student loan transactions with auction rate exposure. Overall, collateral performance for the trust has been consistent with expectations from a net default and delinquency perspective. Approximately 86% of the bonds are tax-exempt auction rate securities currently paying interest at the maximum rate; the remaining bonds are fixed rate securities. The trust documents define the maximum rate as the lesser of 175% multiplied by the SIFMA index and 14%. The maximum rate definition limits the amount of interest the trust can pay on the auction rate notes.

The total parity ratio for the trust as of Sept. 30, 2008 was 115.29%. The senior parity ratio was approximately 133%.

Credit enhancement consists of excess spread, overcollateralization and a reserve account in addition the senior notes benefit from subordination provided by the lower priority notes. The collateral supporting the bonds consists of 99.03% federally guaranteed loans originated under the FFELP (Federal Family Education Loan Program). FFELP loans are guaranteed by an eligible guarantor to at least 97% of principal and accrued interest, depending on loan origination date. The remaining 0.97% are private loans originated under the Rhode Island Family Education Loan (RIFEL) program.

The ratings affirmed are as follows:

Rhode Island Student Loan Authority 1993 Master Trust:

--1994 Series A at 'AAA';

--1994 Series B at 'AAA';

--1994 Subordinate Series II at 'AAA';

--1995 Series A at 'AAA';

--1995 Subordinate Series III at 'AAA'.

More featured news | Post your news