The ratings assigned to New Jersey Higher Education Student Assistance Authority's (NJ HESAA) $225 million student loan revenue bonds 2005 series A, B, C, and D are based on an unconditional, irrevocable financial guaranty insurance policy provided by MBIA Insurance Corp. (MBIA; 'AAA' insurer financial strength rating) that guarantees payment of scheduled interest and principal on each series of the 2005 bonds. Although the rating is dependent on the financial strength rating on MBIA, the underlying transaction is of investment-grade quality, based on the following: A moral obligation provision that requires the state of New Jersey to maintain the debt service reserve fund at its required level of 2.0% of the principal amount of the 2005 bonds. This obligation is
