Most ratings were raised to AAA or AA+
LOUISVILLE, Ky. (Oct. 16, 2014) — Several of the Kentucky Higher Education Student Loan Corporation’s (KHESLC) bond issues have been upgraded and others have been affirmed after a recent review by Standard and Poor’s Rating Services.
In early October, Standard and Poor’s Rating Services performed a routine review of the KHESLC bond issues for which the firm provides ratings. Of the 13 series reviewed, 10 ratings were raised and the remaining three ratings were affirmed. Each series is backed by pools of student loans originated through the U.S. Department of Education’s Federal Family Education Loan Program (FFELP), which ended in 2010.
Standard and Poor’s advised KHESLC that the ratings of all 10 remaining 1997 General Bond Resolution series bonds were upgraded to “AAA” from “AA+.” Ratings of the separately secured series 2010, 2013-1 and 2013-2 bonds were affirmed as “AA+.” Standard and Poor’s considered multiple factors, such as KHESLC’s loan portfolio performance and credit stability, in making its ratings determinations.
Standard and Poor’s also advised KHESLC that it will continue to monitor the performance of the student loan portfolio backing these transactions for future ratings and credit enhancements.
Established by the Kentucky General Assembly in 1978, KHESLC is a public, nonprofit corporation that provides education loans for students and parents. KHESLC also provides loan servicing and administrative support to its FFELP and Kentucky Advantage Education Loan borrowers, and operates a call center for Aspire Resources Inc., a not-for-profit servicer for the Federal Direct Loan Program. KHESLC employs over 300 people, the majority working in Louisville.
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