Fitch Upgrades Vermont Student Assistance Corp Education Loan VRD Rev Bonds
March 15 2012 - 4:26PM
Business Wire
On the effective date of March 15, 2012, Fitch Ratings upgrades
the long- and short- term rating assigned to the $200,000,000
($170,000,000 currently outstanding) Vermont Student Assistance
Corporation Education Loan Tax-Exempt Variable Rate Demand Revenue
Bonds Senior Series 2008C-1 and 2008C-2 to 'A+sf/F1+sf' from
'Asf/F1sf'; Outlook Stable
The rating action is in connection with the substitution of the
irrevocable direct-pay letter of credit (LOC) previously provided
by Lloyds (rated 'A/F1'; Stable Outlook by Fitch) with a substitute
LOC to be issued by State Street Bank and Trust Company (State
Street, rated 'A+/F1+'; Stable Outlook ).
Pursuant to the substitute State Street LOC, the bank is
obligated to make payments of principal of and interest on the
bonds upon maturity, acceleration and redemption, as well as
purchase price for tendered bonds. The rating will expire upon the
earliest of: (a) March 15, 2014, the stated expiration date of the
State Street LOC; (b) conversion to any interest rates other than a
covered rate; (c) any prior termination of the State Street LOC;
and (d) defeasance of the bonds. The State Street LOC provides full
and sufficient coverage of principal plus an amount equal to 202
days of interest at a maximum rate of 12 % based on a year of 365
days and purchase price for tendered bonds, while in the weekly
rate mode.
Additional information is available at 'www.fitchratings.com'.
The ratings above were solicited by, or on behalf of, the issuer,
and therefore, Fitch has been compensated for the provision of the
ratings.
Applicable Criteria and Related Research:
--'Rating Guidelines for Letter of Credit-Supported Bonds (July
26, 2011).
Applicable Criteria and Related Research:
Rating Guidelines for Letter of Credit-Supported Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647311
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