Fitch Rates Finance Authority of Maine Education Loan Revenue Bonds.

NEW YORK -- Fitch assigns and confirms the outstanding ratings of the following education loan revenue bonds issued by the Finance Authority of Maine:

Ratings for new issuance:

--$50,000,000 2007 senior series A-1 'AAA';

--$50,000,000 2007 senior series A-2 'AAA';

--$40,000,000 2007 senior series A-3 'AAA'.

Ratings confirmed on existing debt:

--$69,500,000 2003 senior series A 'AAA';

--$5,500,000 2003 subordinate series B 'A';

--$47,500,000 2005 senior series A-1 'AAA';

--$47,000,000 2005 senior series A-2 'AAA';

--$5,500,000 2005 subordinate series B 'A'.

The 'AAA' ratings for the 2007 senior series bonds are based on the quality of Federal Family Education Loan Program (FFELP) student loan portfolio, the transaction's legal structure and level of internal credit enhancement, and a financial guaranty insurance policy provided by Ambac Assurance Corporation, whose financial strength is rated 'AAA' by Fitch Ratings. Under the policy, Ambac will insure payment of the principal and interest on the 2003 senior series and 2005 Senior Series, as well as the 2007 senior series bonds issued pursuant to the Trust Indenture.

The ratings address the ability of the trust to pay bond principal 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 the auction-rate bondholders to successfully remarket their bonds at an auction now or in the future.

The 2007 series A-1, A-2, and A-3 bonds are issued pursuant to an Indenture of Trust, dated as of December 1, 2003, and as further supplemented by the Third Supplemental Indenture of Trust, dated as of May 1, 2007. The bond proceeds will be deposited to the loan account and be used to acquire or originate FFELP student loans, deposited to the debt service reserve account, and pay costs of issuance. The Finance Authority of Maine also intends to use a portion of the proceeds from the senior series 2007 bonds issuance to refund the 2003 subordinate series B and 2005 subordinate series B bonds.

The 2007 series A-1, A-2, and A-3 bonds are tax-exempt, 35-day auction-rate securities with legal final maturity on June 1, 2037. Interest is payable semiannually on each June and December 1, commencing June 1, 2007.

The Finance Authority of Maine (FAME) is a body corporate and politic and a public instrumentality of the State of Maine created in 1983 by an act of the state legislature. One of the Authority's purposes is to stimulate a larger flow of private investment funds to help finance expansion of industrial, manufacturing, fishing, agricultural and recreational enterprises in Maine. FAME has been responsible for the administration of Maine's higher education loan and grant program and has been designated Maine's designated guaranty agency for the FFELP for almost 17 years. In 2003, FAME was authorized to issue bonds to purchase FFELP loans as a secondary market participant.

The collateral securing the notes are Consolidation, Stafford and PLUS loans originated under the FFELP. The loans are guaranteed to at least 97% of principal and accrued interest by an eligible guarantor(s), depending on loan origination date, and are reinsured by the U.S. Department of Education up to the same amounts.

The loan portfolio is serviced by Financial Institution Services Corp. (FISC) and Edfinancial Services, LLC.

Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.