NEW YORK - (Business Wire) Fitch Ratings affirms at 'AA-' the Kentucky Higher Education Student Loan Corporation (KHESLC) Insured Student Loan Revenue 2008 series A bond issued under its 1983 General bond Resolution. Fitch also assigns a Stable Rating Outlook, given that the rating is expected to remain stable, and a Loss Severity (LS) rating of 'LS1', given the tranche thickness of 100%. The affirmation is based on a review of the legal and financial structure of the trust, as well as cash flows run using Fitch's assumptions corresponding to an 'AA-' rating. Fitch's Global Structured Finance Rating Criteria were used to review the rating. Investors holding the bond receive interest protection through a debt service reserve account sized to cover all future interest payments for the life of the bond under Fitch's 'AA-' stress scenario. Investors receive principal protection through the Loan Participation Purchase Program established under the Ensuring Continued Access to Student Loans Act of 2008. Through this program, the U.S. Department of Education reimburses the trust for pledged FFELP loans at par value upon submission of such a request.
The following applicable criteria report is available on Fitch's web site at 'www.fitchratings.com': 'Global Structured Finance Rating Criteria' dated Sept. 30, 2009.
Additional information is available at 'www.fitchratings.com'.
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