The rating on Rhode Island Student Loan Authority's (the authority's) student loan revenue bonds series 2006 is based on the unconditional and irrevocable bond insurance policy provided by Ambac Assurance Corp. (Ambac; 'AAA' insurer financial enhancement rating) that guarantees the 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 the recycling and withdrawal of funds; a debt service reserve account; and the use of experienced servicing agents, such as Nelnet Inc. and Pennsylvania Higher Education Assistance Authority. The series 2006 bonds were issued to provide funds to finance eligible loans, make deposits in certain accounts established under the indenture,
