Stable net interest revenue with limited credit risk from large portfolio of federally guaranteed education loans (FFELP) Favorable market position, owing to large scale and strong customer relationships in the education loan servicing business Strategy consistent with loan servicing and asset-recovery capabilities Limited business diversity outside of the student loan industry Growing exposure to higher-risk private education loans as FFELP assets run off Heavy reliance on securitizations and periodic refinancing risk related to unsecured debt Our stable rating outlook on Navient Corp. reflects our expectation that Navient will maintain adequate capital against its student loan portfolio while it returns capital to shareholders. We expect the company to slowly run off its Federal Family Education Loan (FFELP) portfolio and potentially replace
