NEW YORK - (Business Wire) Fitch Ratings has affirmed eight classes from the Federal Family Education Loan Program (FFELP) student loan revenue bonds issued by Plains Higher Education Authority 1993 Abilene Indenture that were previously identified as 'Under Analysis'. A complete list of ratings is at the end of this release.
The collateral supporting the bonds consists of federally guaranteed loans originated under the FFELP. FFELP loans are guaranteed by an eligible guarantor to at least 97% of principal and accrued interest, depending on loan origination date. The FFELP loans are also reinsured by the U.S. Department of Education up to the same amounts.
Overall, collateral performance for all of the trusts has been consistent with expectations from a net default and delinquency perspective. The trust consists of 98% tax exempt auction rate debt and 2% fixed rate debt. Parity ratios, or the ratio of assets to liabilities, have remained stable despite the auction fails. The total parity ratio for the trust as of June 30, 2008 was 107.24%.
Credit enhancement consists of excess spread, and a debt service reserve account in the amount of $3.65 million. Additionally, the senior notes benefit from subordination provided by the lower priority notes.
The student loan portfolio is serviced by Panhandle Plains Student Loan Center and ACS.
The ratings affirmed are as follows:
Plains Higher Education Authority 1993 Abilene Indenture:
--Senior Series 1993B at 'AAA';
--Subordinate Series 1993C at 'A';
--Senior Series 1995B at 'AAA';
--Senior Series 1997 at 'AAA';
--Senior Series 1998A at 'AAA';
--Subordinate Series 1998B at 'A';
--Senior Series 2002A-1 at 'AAA';
--Senior Series 2005A-3 at 'AAA'.
SMARTView is Fitch's monthly process whereby deals are run through various internal algorithms to identify variances in performance that would trigger an in depth review. Those deals are classified as 'Under Analysis'. Those not placed 'Under Analysis' are given a SMARTView date, indicating no further analysis is required.
Fitch's rating definitions and the terms of use 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 are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Tracy Wan, 212-908-9171
Stefanie Leung, 212-908-0826
or
Media Relations:
Sandro Scenga, 212-908-0278
Email: sandro.scenga@fitchratings.com
