Eight Ratings Raised, 93 Affirmed On Seven New Jersey Higher Education Student Assistance Authority Series

OVERVIEW We raised our ratings on eight bonds from New Jersey Higher Education Student Assistance Authority's 2010-1 Indenture (series 2010-1 and 2017-1) and 2012 Indenture (series 2012-1, 2013-1, 2014-1, 2015-1, and 2016-1). We also affirmed our ratings on 93 bonds from New Jersey Higher Education Student Assistance Authority's 2010-1 Indenture (series 2010-1 and 2017-1) and 2012 Indenture (series 2012-1, 2013-1, 2014-1, 2015-1, and 2016-1). The upgrades reflect the bonds' short-term maturities. The affirmations reflect our view of the credit support, parity, and pool characteristics, among other factors. The bonds are backed by a pool of private student loans made under HESAA's NJCLASS loan program. NEW YORK (S&P Global Ratings) Feb. 4, 2019--S&P Global Ratings today raised its ratings on eight

...The upgrades reflect the expected payoff of bonds maturing within the current year. To ensure the full payment of the bonds' principal at their stated maturity dates, on each mid-year payment date, the trustee will set aside 50% of the principal amount due in next six months. The upgrades also reflect the transactions' structural features, which restrict the use of such funds for other purposes. The affirmations reflect our view of each trust's collateral performance, which supports our initial expected cumulative default assumptions. We believe the credit enhancement available is sufficient to support the bonds at their current ratings. The 2010-1 and 2012 trusts have both senior and subordinate bonds that pay interest semi-annually. The bonds are subject to various redemption provisions, including optional redemption, mandatory redemption resulting from non-origination, special optional redemption, and special mandatory redemption from excess revenues. PARITY The increase in parity for...

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