Bulletin: Navient Corp. Ratings Unaffected By Second-Quarter Earnings Preview

NEW YORK (Standard&Poor's) July 14, 2015--Standard&Poor's Ratings Services said today that its ratings on Navient Corp. (BB/Stable/B) are unaffected by Navient's expected second-quarter results and revised core earnings guidance. The company has removed from its 2015 guidance additional private loan acquisitions and has reduced its forecast for net interest income as a result of increased cost of funds. In addition, a segment of higher risk private education loans are experiencing unfavorable credit trends. As a result, the company increased its provision for these loans and now projects a private education loan loss provision of $191 million for the quarter and $575 million to $600 million for the year. Notwithstanding the forecasted decline in net interest income

...NEW YORK (Standard & Poor's) July 14, 2015--Standard & Poor's Ratings Services said today that its ratings on Navient Corp. (##/Stable/B) are unaffected by Navient's expected second-quarter results and revised core earnings guidance. The company has removed from its 2015 guidance additional private loan acquisitions and has reduced its forecast for net interest income as a result of increased cost of funds. In addition, a segment of higher risk private education loans are experiencing unfavorable credit trends. As a result, the company increased its provision for these loans and now projects a private education loan loss provision of $191 million for the quarter and $575 million to $600 million for the year. Notwithstanding the forecasted decline in net interest income and projected private education loan loss provision, we expect Navient's capital, leverage, and earnings to remain "adequate" as our criteria define the term. RELATED CRITERIA AND RESEARCH Related Criteria + Nonbank Financial...

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