Fitch Affirms KHESLC 2008 Series A Bond; Assigns Outlook and Loss Severity Rating.NEW YORK -- Fitch Ratings affirms at 'AA-' the Kentucky Higher Education Student Loan Corporation (KHESLC KHESLC Kentucky Higher Education Student Loan Corporation ) Insured Student Loan Revenue 2008 series A bond issued under its 1983 General bond Resolution. Fitch also assigns a Stable Rating Outlook, given that the rating is expected to remain stable, and a Loss Severity (LS) rating of 'LS1', given the tranche thickness of 100%. The affirmation is based on a review of the legal and financial structure of the trust, as well as cash flows run using Fitch's assumptions corresponding to an 'AA-' rating. Fitch's Global Structured Finance Rating Criteria were used to review the rating. Investors holding the bond receive interest protection through a debt service reserve account sized to cover all future interest payments for the life of the bond under Fitch's 'AA-' stress scenario. Investors receive principal protection through the Loan Participation Purchase Program established under the Ensuring Continued Access to Student Loans Act of 2008. Through this program, the U.S. Department of Education reimburses the trust for pledged FFELP loans at par value upon submission of such a request. The following applicable criteria report is available on Fitch's web site at 'www.fitchratings.com': 'Global Structured Finance Rating Criteria' dated Sept. 30, 2009. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP HTTP in full HyperText Transfer Protocol Standard application-level protocol used for exchanging files on the World Wide Web. HTTP runs on top of the TCP/IP protocol. ://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. |
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