The rating on Rhode Island Student Loan Authority series 2004-A is based on the unconditional and irrevocable bond insurance policy provided by Ambac Assurance Corp. (Ambac; 'AAA' insurer financial enhancement rating) that guarantees payment of scheduled principal and interest. Although the rating is dependent on Ambac's insurer financial enhancement rating, the underlying transaction is investment–grade quality based on the structural features that limit recycling and withdrawal of funds; a debt service reserve account; and the use of experienced servicing agents, such as Nelnet Loan Services Inc. and Pennsylvania Higher Education Assistance Authority. The series 2004-A bonds will be issued to provide funds to originate and acquire eligible loans, make deposits in certain accounts established under the indenture, and pay costs
