Bulletin: Navient Corp.'s Proposed Strategic Initiatives Will Reduce Revenue While Likely Improving Margins - S&P Global Ratings’ Credit Research

Bulletin: Navient Corp.'s Proposed Strategic Initiatives Will Reduce Revenue While Likely Improving Margins

Bulletin: Navient Corp.'s Proposed Strategic Initiatives Will Reduce Revenue While Likely Improving Margins - S&P Global Ratings’ Credit Research
Bulletin: Navient Corp.'s Proposed Strategic Initiatives Will Reduce Revenue While Likely Improving Margins
Published Feb 07, 2024
3 pages (1424 words) — Published Feb 07, 2024
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Abstract:

ENGLEWOOD (S&P Global Ratings) Feb. 7, 2024--S&P Global Ratings today said that Navient Corp.'s recently proposed strategic initiatives could be a net benefit to the company by enabling it to reduce overhead expenses and improve margins--albeit with some impact to revenue. Navient's proposed initiatives include outsourcing its loan servicing operations, divesting its business processing division, and streamlining its shared service infrastructure and corporate footprint. The timing of the outsourcing and potential divestment would influence the corporate overhead reductions. The company expects to finalize all three initiatives in 2024 and implement them over the next 18-24 months. The proposed initiatives do not affect our issuer credit rating on Navient (BB-/Stable/B). Given its diminishing scale of loans, Navient has signed a letter

  
Brief Excerpt:

...February 7, 2024 ENGLEWOOD (S&P Global Ratings) Feb. 7, 2024--S&P Global Ratings today said that Navient Corp.'s recently proposed strategic initiatives could be a net benefit to the company by enabling it to reduce overhead expenses and improve margins--albeit with some impact to revenue. Navient's proposed initiatives include outsourcing its loan servicing operations, divesting its business processing division, and streamlining its shared service infrastructure and corporate footprint. The timing of the outsourcing and potential divestment would influence the corporate overhead reductions. The company expects to finalize all three initiatives in 2024 and implement them over the next 18-24 months. The proposed initiatives do not affect our issuer credit rating on Navient (##-/Stable/B). Given its diminishing scale of loans, Navient has signed a letter of intent to outsource all of its loan servicing operations to Mohela (the Missouri Higher Education Loan Authority), one of the largest...

  
Report Type:

Bulletin

Issuer
Navient Corp.
GICS
Consumer Finance (40202010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Navient Corp.'s Proposed Strategic Initiatives Will Reduce Revenue While Likely Improving Margins" Feb 07, 2024. Alacra Store. May 25, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Navient-Corp-s-Proposed-Strategic-Initiatives-Will-Reduce-Revenue-While-Likely-Improving-Margins-3122829>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Navient Corp.'s Proposed Strategic Initiatives Will Reduce Revenue While Likely Improving Margins Feb 07, 2024. New York, NY: Alacra Store. Retrieved May 25, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Navient-Corp-s-Proposed-Strategic-Initiatives-Will-Reduce-Revenue-While-Likely-Improving-Margins-3122829>
  
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