NEW YORK – Fitch Ratings Ltd. has affirmed a rating of “AAA” for $60 million in revenue bonds issued by the R.I. Student Loan Authority in 2008 backed by private student loans.
Fitch also assigned a negative ratings outlook to the series.
The ratings agency maintain its previous rating because the bonds had “not changed significantly since closing as no loans were in deferment or forbearance status as of the most recent reporting period,” Fitch said.
The firm said the negative outlook reflects its view on the private student loan sector in general.
The bond issues – dated April 28, 2008 – were intended to acquire $60 million in newly originated student loans. To provide additional liquidity, a capitalized interest account was established and funded at closing with $11 million, according to Fitch. As an added protection, the student loan authority established a $2.56 million reserve account – 4 percent of the principal balance.
The R.I. Student Loan Authority is a nonprofit state authority providing affordable higher education loans. Since 1981, the authority has provided more than 200,000 loans and helped 100,000 students. Additional information is available at www.risla.com.
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