The ratings on Vermont Student Assistance Corp.'s (VSAC) series 2001 education loan revenue bonds are based on an unconditional, irrevocable municipal bond insurance policy that guarantees payment of scheduled principal and interest provided by Ambac Assurance Corp. ('AAA' financial strength rating). Although the 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 and alternative loan originations, and limit recycling and the withdrawal of funds; The issuer's excellent servicing history, with minimal claims rejected for improper servicing since 1982; The bankruptcy-remote municipal issuer; and The excellent performance of VSAC as a guarantor (VSAC is a lender, servicer, and guarantor
