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CHELA Financial USA, Inc. $120M Revs. Rated 'AAA' By Fitch -- Fitch Financial Wire --

NEW YORK, Nov. 21 /PRNewswire/ -- California Higher Education Loan Authority (CHELA) Financial USA, Inc.'s $30 million student loan revenue bonds, senior 1996 series B-1, $30 million senior series B-2, $30 million senior series B-3 and $30 million senior series B-4 are rated 'AAA' by Fitch Investors Service. Additionally, the $20 million junior-senior series C are rated 'A' and the outstanding $25 million senior series A (taxable auction rate certificates) are affirmed 'AAA'. The bonds were sold through negotiation by a syndicate led by PaineWebber, Inc. on Nov. 19, 1996.

The ratings are based on the quality of the student loan portfolio, the 2% reserve fund with a $500,000 minimum and the ability of CHELA Financial USA, Inc. to draw under the series 1996 CHELA Financial, Inc. collateralized investment agreement between CHELA Financial USA, Inc. and Union Bank of California, N.A. as trustee under the indenture of trust dated May 15, 1994. The ratings reflect the ability of the trust estate to redeem bonds at maturity. However, the ratings do not address the liquidity for the auction rate bonds, nor do they address the ability of the auction rate bondholders to redeem their bonds at a repricing date either now or in the future. Also, the ratings do not reflect any carryover amounts that may accrue on the bonds.

SOURCE Fitch Investors Service, Inc.
 -0- 11/21/96


/CONTACT: Claire Mezzanotte of Fitch, 212-908-0503/

CO: California Higher Education Loan Authority Financial USA, Inc. ST: California IN: FIN SU: RTG

DC -- NYTH097 -- 5408 11/21/96 12:54 EST http://www.prnewswire.com
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Date:Nov 21, 1996
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