Printer Friendly

NELLIE MAE $48.9 MIL. STUDENT LOAN REF. BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 7 /PRNewswire/ -- The New England Education Loan Marketing Corp.'s (Nellie Mae) $48.9 million student loan refunding bonds 1993 series B are rated `A' by Fitch. The rating reflects Nellie Mae's high quality Federal Family Education Loan Program (FFELP) student loan portfolio, limited credit exposure, strict monitoring procedures, and strong earnings performance. Concerns focus primarily on the single product concentration and political sensitivities that could alter the structure of the student loan business. The credit trend is stable.
 Nellie Mae purchases and holds student loans guaranteed by independent, third-party state guaranty agencies primarily from New England, New York, New Jersey, and California. The company is currently the fourth largest holder of student loans and the largest non-profit holder, with total student loans receivable of $1.4 billion at March 31, 1993.
 In addition to the guaranty agency support, all of Nellie Mae's loans are reinsured by the U.S. Department of Education (DOE), backed by the full faith and credit of the U.S. Government. If a guaranty agency fails and the agency's obligations are not considered general obligations of the state, the DOE assumes responsibility for the loans. If an agency is considered an obligation of the state, then the state is responsible for the loans. In order to collect on the reinsurance, loans must be originated and serviced in accordance with stringent DOE guidelines. As all of Nellie Mae's loans are serviced by third party servicers, credit quality rests primarily with the servicers. Nellie Mae retains full recourse to all originators and servicers.
 Profitability is strong and improving, denoted by an increasing return on average assets that equaled 1.7 percent for the year ended Dec. 31, 1992 and 2.16 percent for the three months ended March 31, 1993. The growth in profitability has resulted from an improvement in the net interest margin and a significant decline in the company's servicing and administrative expenses as a percentage of the loan portfolio.
 Net assets (equity) has increased to $77.4 million at March 31, 1993 from $12.5 million at Dec. 31, 1987 solely from the addition of retained earnings. Debt to net assets, while high, has improved to 18.4 times at March 31, 1993 from 43.2 times at Dec. 31, 1987. However, on a risk adjusted basis, the company is well-capitalized with a total capital ratio was 24.2 percent at March 31, 1993.
 -0- 6/7/93
 /CONTACT: Helene L. Moehlman, CFA, 212-908-0606, or Mary Griffin, 212-908-0537, both of Fitch/


CO: New England Education Loan Marketing Corp. ST: IN: FIN SU: RTG

TM -- NY080 -- 6204 06/07/93 16:33 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 7, 1993
Words:441
Previous Article:TYCO APPOINTS DAVID P. BROWNELL AS VICE PRESIDENT
Next Article:SOUTH JERSEY GAS $35 MILLION BONDS RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
MAINE EDUCATIONAL LOAN AUTH. BONDS 1992A-1 'AAA', 1992A-2 'A' BY FITCH --FITCH FINANCIAL WIRE (FFW)--
BEAR STEARNS SECURED INVESTORS 1992-2 RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
SLFC, INC. NOTES 'AAA', STUDENT LOAN FNDG. BONDS 'A/BBB' BY FITCH -- FITCH FINANCIAL WIRE --
NELLIE MAE, INC. $143.1 MILLION SERIES 1993A&B NOTES 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
NELLIE MAE $107 MIL. STUDENT LOAN REF. BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
NELLIE MAE $156 MILLION 1994-A NOTES RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
SALLIE MAE $1.506B NOTES RATED 'AAA'/'A+' BY FITCH -- FITCH FINANCIAL WIRE --
CRIIMI MAE Trust I $71.9M Mortgage Bonds Rated 'BBB' By Fitch -- Fitch Financial Wire --
Nellie Mae $897 Million Senior Debt Lowered To 'A' By Fitch IBCA - Fitch Financial Wire -
/FROM PR NEWSWIRE NEW YORK 800-776-8090/ TO BUSINESS EDITOR:.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters