The ratings on Pennsylvania Higher Education Assistance Agency's (PHEAA) 2001 series A student loan adjustable rate revenue bonds are based on an unconditional, irrevocable financial guaranty insurance policy that guarantees payment of scheduled principal and interest provided by Ambac Assurance Corp. ('AAA' financial strength rating). The 'A-1+' liquidity rating, which will expire on June 30, 2006, is based on a standby bond purchase agreement (SBPA) provided by Lloyds TSB Bank PLC. Although the 'AAA' rating is dependent on Standard&Poor's rating of Ambac's insurer financial strength, the underlying transaction is of investment-grade quality, as illustrated by the following: The structural features that restrict proprietary loan originations, and limit recycling and the withdrawal of funds; A capitalized bond interest fund
