Navient Corp.

Stable net interest and servicing revenues from large portfolio of education loans Limited credit risk in large portfolio of federally guaranteed education loans (FFELP) Large scale in the education loan servicing business Concentrated unsecured debt maturities Declining portfolio of education loans as FFELP loans run off Limited, though increasing, business diversity outside of the education loan industry The negative outlook on Navient Corp. reflects the risks S&P Global Ratings sees stemming from Navient's concentration of large unsecured debt maturities in 2018-2020. Approximately $6.5 billion of unsecured debt will mature in 2018–2020, including about $1.9 billion in June 2018, followed by $1.2 billion in January 2019. We expect Navient will generate at least $1.5 billion per year in cash from operations

...The negative outlook on Navient Corp. reflects the risks S&P Global Ratings sees stemming from Navient's concentration of large unsecured debt maturities in 2018-2020. Approximately $6.5 billion of unsecured debt will mature in 2018¡2020, including about $1.9 billion in June 2018, followed by $1.2 billion in January 2019. We expect Navient will generate at least $1.5 billion per year in cash from operations and will maintain on-balance-sheet cash sufficient to cover all unsecured debt maturing in 2017. Furthermore, we expect the company to maintain a risk-adjusted capital (RAC) ratio over 8.0%. We could lower the ratings in the next six to 10 months if Navient does not reduce unsecured debt due in 2018-2019 or increase liquid assets to more clearly demonstrate that it is well-positioned to meet its 2018-2020 maturities. If unfavorable market conditions restrict Navient's ability to continue to enhance its liquidity and manage upcoming maturities, we could lower the rating, particularly...

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