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 maturity profile Legal and regulatory risk related to servicing of education loans 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 recent litigation against the company and its concentration of large secured debt maturities in 2018-2020. Approximately $5.9 billion of unsecured debt will mature in 2018-2020. Excluding any impact of recent litigation, we expect Navient will generate at least $1.5 billion per year in cash from operations and

...The negative outlook on Navient Corp. reflects the risks S&P Global Ratings sees stemming from recent litigation against the company and its concentration of large secured debt maturities in 2018-2020. Approximately $5.9 billion of unsecured debt will mature in 2018-2020. Excluding any impact of recent litigation, we expect Navient will generate at least $1.5 billion per year in cash from operations and will successfully refinance upcoming unsecured debt maturities. Also, we expect Navient to maintain adequate risk-adjusted capital (RAC), with a RAC ratio of at least 7.0%. We could lower the ratings in the next 12 months if Navient does not reduce unsecured debt due in 2018-2020 or increase liquid assets to more clearly demonstrate that it is well positioned to meet those maturities. If unfavorable market conditions restrict Navient's ability to continue to enhance its liquidity and manage upcoming maturities, we could lower the ratings. Also, we could lower the ratings if the company's...

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