Fitch Assigns Ratings to Arizona Higher Education Loan Authority, Series 2006.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch assigns ratings to the Arizona Higher Education Loan Authority (AHELA) Student Loan Revenue and Refunding Bonds as follows: --$42,500,000 Student Loan Revenue and Refunding Bonds, Series 2006A-1, 'AAA'; --$42,500,000 Student Loan Revenue and Refunding Bonds, Series 2006A-2, 'AAA'; --$10,000,000 Student Loan Revenue and Refunding Bonds, Series 2006B, 'A'. The ratings are based on the quality of the student loan portfolio, the credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing provided, and the sound legal structure of the transaction. The collateral in the trust consists of 100% Federal Family Education Loan Program The Federal Family Education Loan Program (FFELP) is a United States Department of Education program that provides for private organizations to market, originate, and service federally guaranteed loans, such as Stafford and PLUS loans to students and their parents. (FFELP FFELP Federal Family Education Loan Program ) loans which will be reinsured at least 97% by the Department of Education. The trust benefits from a reserve fund sized at 2% of the aggregate principal amount of the bonds outstanding, with a $500,000 minimum. The senior series bonds also benefit from 11.35% subordination provided by the subordinate bonds in the trust. The ratings address the ability of the trust to redeem bonds at maturity and pay timely interest. The ratings do not address the ability of the trust to pay carry-over interest, nor do they address the ability of auction rate bondholders to successfully redeem their bonds at an auction now or in the future. The proceeds of the series 2006 bonds are being used to refund interim financing Interim financing A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing. interim financing The financing that supports a transaction until permanent financing can be arranged. , acquire student loans; make deposits to certain accounts, including the reserve and acquisition funds; and pay costs of issuance. The series 2006 bonds are tax exempt, 35-day auction rate bonds with interest payable semi-annually on May 1 and November 1, beginning Nov. 1, 2006. The legal final maturity date for the series 2006 bonds is May 1, 2041. AHELA was incorporated on Dec. 14, 2004 under Title 10, Section 3101 et. seq. of the Arizona Revised Statutes A body of statutes that have been revised, collected, arranged in order, and reenacted as a whole. The legal title of the collection of compiled laws of the United States, as well as some of the individual states. , as amended, in accordance with the terms thereof and in accordance with Section 501(c)(3) of the Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. of 1986, as amended (the "Code"), is a tax-exempt nonprofit corporation authorized to act as a secondary market and direct lender for Eligible Loans. AHELA has no taxing power and does not have the power to pledge the general credit or taxing powers of the State of Arizona or any political subdivision thereof. This is AHELA's first issuance of term student loan backed bonds. Education Lending Group, Inc. is the master servicer and Great Lakes Educational Loan Services, Inc. and Education Loan Servicing Corporation will act as subservicers of the student loans. Fitch's 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 site, 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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