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S&P Rates S. Carolina Student Loan $150M Rev Bnds AAA.

NEW YORK--(BUSINESS WIRE)--Standard & Poor's--

July 2, 1999--Standard & Poor's today assigned its triple-'A' rating to South Carolina Student Loan Corp.'s $150 million education loan revenue bonds series 1999 (LIBOR indexed bonds).

At the same time, Standard & Poor's affirmed its triple-'A' rating on the corporation's outstanding debt as follows:

-- Education loan revenue bonds 1996 series A-1 through A-3,

--Education loan revenue bonds 1997 series A-1 through A-3, and

--Education loan revenue bonds 1998 series A-1 and A-2. The triple-'A' rating on the series 1999 bonds is based on the following considerations:

-- Low historical default rates resulting from a portfolio comprised of loans disbursed predominantly to students attending four-year schools,

-- Strong structural features restricting the release of cash from the trust, and

-- Liquidity enhancement provided by a debt service reserve fund sized at 1.5% of the initial par amount.

South Carolina Student Loan Corp.'s $150 million senior lien floating-rate educational loan revenue bonds series 1999 are the first LIBOR-indexed obligations issued by the corporation.

Historical default rates, using those experienced by the state's educational loan guaranty agency (South Carolina State Education Assistance Authority) as a proxy, have consistently been among the lowest in the country.

Additionally, the transaction is bolstered by a restrictive parity ratio. Provisions in the general resolution restrict the release of excess cash from the trust before parity of 112% is reached on the senior bonds, and 103% on the total obligations. The opening total parity on the closing date of June 28, 1999, is approximately 104%. Furthermore, noteholders benefit from liquidity enhancement in the form of a debt service reserve account sized at 1.5% of issuance.

South Carolina Student Loan Corp. is a nonprofit, public benefit corporation incorporated in 1973 for the purpose of receiving, disbursing, and administering funds exclusively for educational purposes and to make loans available to South Carolina residents for attendance at eligible institutions beyond the secondary school level as defined in the State Education Assistance Act of South Carolina. The corporation performs its designated function by acting as the agent of the South Carolina State Education Assistance Authority. The South Carolina Student Loan Corp. has been designated as an "eligible lender" pursuant to Title IV of the U.S. Higher Education Act of 1965.

Proceeds will be used primarily to refinance an existing portfolio of student loans financed by bank lines of credit and guaranteed by the South Carolina State Education Assistance Authority, pay accrued interest on the 1999 bonds, and fund the debt service reserve fund, Standard & Poor's said. ---CreditWire
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Publication:Business Wire
Date:Jul 2, 1999
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