Fitch Rates Montana Higher Education Student Assistance Corp. Series 2006 Issuance.NEW YORK -- Fitch Ratings assigns ratings to the following student loan revenue bonds issued by Montana Higher Education Student Assistance Corporation (MHESAC MHESAC Montana Higher Education Student Assistance Corporation ): Ratings assigned to new issuance: --$226,775,000 student loan revenue bonds, senior series 2006-A, 'AAA'; --$74,700,000 student loan revenue bonds, senior series 2006-B, 'AAA'; --$30,000,000 student loan revenue bonds, subordinate series 2006-C, 'A'. The ratings are based on the quality of the student loan portfolio; the credit enhancement provided; and the legal structure of the trust. The collateral consists entirely of 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 ) student loans, which are guaranteed at least 97%, by an eligible guarantor and re-insured by the U.S. Department of Education. In addition, the ratings on the senior notes benefit from the subordination provided by the subordinate notes. The ratings address the ability of the trust to pay bond principal at the legal final maturity and pay timely interest. The series 2006-A, 2006-B and 2006-C bonds represent the 11th issuance from the indenture of trust dated Aug. 1, 1993 and are issued under the 12th supplemental indenture of trust dated May 1, 2006. The series 2006-A, 2006-B, and 2006-C bond proceeds will be used to acquire or originate FFELP student loans, make a deposit to the administration fund, and pay costs of issuance. Credit enhancement is provided in the form of a reserve account sized at 1.0% and excess spread. In addition, the 2006-A and 2006-B bonds benefit from 7.7% subordination. The series 2006-A bonds are taxable securities with interest payments indexed to three month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). , payable quarterly. The series 2006-B bonds are taxable, seven-day auction rate bonds, payable weekly, and the series 2006-C bonds are taxable, 28-day auction rate bonds, payable monthly. The legal final maturity dates for the series 2006-A, 2006-B and 2006-C bonds are March 20, 2024, Dec. 1, 2040 and Dec. 1, 2040, respectively. MHESAC is a nonprofit organization created in July 1980 and designated by the governor of Montana as the sole and exclusive nonprofit corporation in the state to provide a statewide student loan acquisition program and lend directly to student borrowers in connection with the guaranteed student loan program under the Higher Education Act The Higher Education Act may refer to an Act of either the Congress of the United States or of the Parliament of the United Kingdom.
SAF Society of American Foresters SAF Society of American Florists SAF Secretary of the Air Force SAF Second Amendment Foundation SAF Singapore Armed Forces SAF Students for Academic Freedom SAF Store And Forward ) through a management and servicing agreement. SAF and Sallie Mae Servicing service the loan portfolio. SAF services the Montana-nexus student loans and Sallie Mae Servicing, through a sub servicing agreement, services all other student loans financed. 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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