Stable net interest and servicing revenue from large portfolio of education loans Limited credit risk in large portfolio of federally guaranteed education loans (Federal Family Education Loan Program) Legal and regulatory risk related to servicing of education loans Business concentration in the education loan industry, though diversity is increasing through the business processing segment S&P Global Ratings' negative outlook on Navient Corp. is based on the current economic conditions and their potential impact on Navient's earnings, leverage, and asset quality. In particular, we believe elevated forbearance and credit deterioration could erode earnings or increase leverage. We expect the company's risk-adjusted capital (RAC) ratio to rise above 7% over the next year, consistent with our previous long-term expectation. We could lower
