Fitch Ratings has placed Vermont Student Assistance Corp. (VSAC) - 1995 Bond Resolution on Rating Watch Evolving, as a result of a the pending restructuring of the trust in conjunction with VSAC's 2013-1 Federal Family Education Loan Program (FFELP) issuance.
VSAC anticipates completing a securitization on June 25, 2013 (VSAC 2013-1) of FFELP loans that are currently pledged to Straight-A, the VSAC 2008 trusts, and the VSAC 1995 trust.
At the closing of the VSAC 2013-1 transaction, approximately $58 million in FFELP student loans is expected to be removed from the VSAC 1995 trust, and the proceeds will be used to redeem some taxable and tax-exempt bonds from the same trust. Additionally, VSAC 2013-1 has an option to purchase an additional $10 million of FFELP student loans out of the 1995 trust within 30 days after the closing.
VSAC 1995 trust is currently backed by 76% FFELP and 24% private student loans as of March 31, 2013. After the restructuring, the trust will be backed by a higher proportion of private student loans. In addition, VSAC is planning to release excess cash out of the 1995 trust. Total parity as of the last distribution was 107.48%. Fitch expects to resolve the rating watch evolving when we are provided with the collateral composition and bond information post restructuring.
NEW YORK--(BUSINESS WIRE)--Fitch Ratings 6.14.2013
Fitch places Vermont Student Assistance Corp - 1995 Bond Resolution on Rating Watch Evolving
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on