Fitch Rates Alaska Student Loan Corp.'s State Projects Revs.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 rates the following state projects revenue bonds issued by Alaska Student Loan Corporation (ASLC ASLC Alaska Sealife Center ASLC Associated Students of Lewis & Clark College ASLC Accruing Superannuation Liability Contributions ASLC Adaptive Side-Lobe Cancellation ): Ratings for new issuance: -- $88,305,000 2005 series A, 'AAA'. The ratings are based on the support of a Municipal Bond Insurance Municipal bond insurance An insurance policy which guarantees payment on municipal bonds in the event of default . municipal bond insurance A guarantee from a third party that principal and interest will be paid to a bondholder. Policy provided by Financial Security Assurance, Inc. (rate 'AAA' insurer financial strength by Fitch). The series 2005 bonds are issued pursuant to the 1st supplemental bond indenture Bond indenture Contract that sets forth the promises of a bond issuer and the rights of investors. bond indenture See indenture. dated March 1, 2005 to a master bond indenture, dated as of March 1, 2005. The 2005 series A bond proceeds, along with an equity contribution from ASLC, will be used to deposit $8.8 million to the capital reserve fund, make a deposit to the state projects fund of $85 million, and to pay costs of issuance. To provide collateral for the series A bonds, the trust will receive $90 million of AlaskaAdvantage Student Loan Program (AASLP) private student loan collateral (including accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. ) via a transfer of loans from a seperate trust established by ASLC under a 1988 trust indenture. The tax-exempt series 2005 bonds are fixed-rate securities, with interest paid semiannually on the first of each January and July, commencing on July 1, 2005. Principal on the 2005 series A bonds will paid according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. serial maturity schedules, commencing on Jan. 1, 2006. The capital reserve fund is the primary source of internal 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 for the 2005 series A bonds. The capital reserve fund is available to pay interest and principal when due and payable to the extent that there are insufficient funds in the bond interest and principal accounts. The capital reserve fund reserve requirement is equal to the least of 10% of the stated principal amount of the series A bonds, 125% of average annual principal and interest payments required for the series A bonds, or the maximum annual principal and interest required for the series A bonds. At closing all of the collateral securing the bonds are credit-tested private loans originated under the AASLP program. The AASLP private loans are not guaranteed by the Department of Education. The student loans pledged under the indenture will be serviced by the Alaska Commission on Postsecondary Education. ASLC, a public corporation and governmental instrumentality Instrumentality Notes issued by a federal agency whose obligations are guaranteed by the full-faith-and-credit of the government, even though the agency's responsibilities are not necessarily those of the US government. , is organized under the laws of the State of Alaska. The AASLP loans are available to students and families from the state of Alaska, as well as those students and families who are attending eligible institutions in the state of Alaska. |
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