Fitch affirms Vermont Student Assistance Corporation's 2008C bonds
Fitch Ratings affirms the education loan revenue bonds of the Vermont Student Assistance Corporation (VSAC) issued under the 2008 Trust Indenture, dated September 1, 2008. The Rating Outlook remains Stable.
The ratings of the bonds are based on the support provided by a direct-pay letter of credit (LOC) issued by Lloyds TSB Bank plc (Lloyds). Lloyd's long-term Issuer Default Rating (IDR) is currently 'AA-', and its short-term IDR is 'F1+.' Lloyds is obligated to make payments of interest and principal on the bonds upon maturity, acceleration and redemption, as well as the purchase price for tendered bonds.
The collateral supporting VSAC's 2008C bonds consists entirely of federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP). FFELP loans are guaranteed at least 97% of principal and accrued interest, depending on the loan origination date. The loans are serviced by the Vermont Student Assistance Corporation.
Fitch affirms the ratings on the following classes of VSAC's 2008C bonds, issued under the 2008 Trust Indenture:
--Class 2008C-1 at 'AA-/F1+', Outlook Stable;
--Class 2008C-2 at 'AA-/F1+', Outlook Stable.
The following applicable criteria report is available on Fitch's web site at 'www.fitchratings.com':
--'Global Structured Finance Rating Criteria' (Sept. 30, 2009).