Fitch Rates Massachusetts Educational Financing Auth's Revenue Bonds, Issue E, Series 2007.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 education loan revenue bonds issued by Massachusetts Educational Financing Authority (MEFA MEFA Massachusetts Educational Financing Authority MEFA Mid-Eastern Farrier's Association ): --$200,000,000 series 2007A 'AAA'; --$85,400,000 series 2007B 'AAA'; --$85,000,000 series 2007C 'AAA'; --$60,000,000 series 2007D 'AAA'; --$55,000,000 series 2007E 'AAA'. The ratings are based on the support of Financial Guaranty Insurance Policies provided by Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. (whose insurer financial strength is rated 'AAA' by Fitch). The bonds of the Issue E indenture are fully guaranteed by Ambac for the payment of timely interest and principal at bond maturity. The series 2007 bonds will be the 13th issuance under the Issue E indenture dated May 1, 1992, as amended and restated as of Feb. 15, 2007. The series 2007A and 2007B bonds are tax-exempt and will pay interest semiannually on the first of each January and July, commencing on July 1, 2007. The 2007A bonds will pay interest at a fixed rate and the 2007B bonds will pay interest according to a 35-day auction rate. The series 2007C, 2007D, and 2007E bonds are taxable and will pay interest monthly according to a 28-day auction rate. At closing, 85.5% of the collateral securing the bonds are credit-tested alternative loans originated under the MEFA Undergraduate Loan and MEFA Loan for Graduate Education loan programs. The MEFA alternative loans are not guaranteed by the Department of Education. The remaining 14.5% of the collateral pool at closing comprises loans originated under the Massachusetts Educational Financing Authority 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. . The student loans pledged under the indenture will be serviced by ACS (Asynchronous Communications Server) See network access server. Education Services. MEFA, 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 Commonwealth of Massachusetts. MEFA is authorized to issue bonds or notes for the purpose of purchasing, making or guaranteeing loans to students or parents. 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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