NEW YORK (Standard&Poor's) July 15, 2003--Standard&Poor's Ratings Services today assigned its 'AAA' rating to Michigan Higher Education Student Loan Authority's $131.98 million student loan refunding revenue and student loan revenue bonds series XII-Z1, XII-Z2, and XII-Z3. The long-term rating is based on the unconditional and irrevocable bond insurance policy provided by Ambac Assurance Corp. (Ambac; 'AAA' insurer financial enhancement rating) that guarantees payment of scheduled principal and interest. Although the 'AAA' rating is dependent on Ambac's insurer financial enhancement rating, the underlying transaction is investment–grade quality based on the structural features that limit recycling and withdrawal of funds, a debt service reserve account, and the use of experienced servicing agents such as Nelnet Loan Services Inc.
