The ratings assigned to Vermont Student Assistance Corp.'s education loan revenue bonds senior series 2007WW, 2007XX, and 2007YY are based on an unconditional, irrevocable municipal bond insurance policy that guarantees payment of scheduled principal and interest provided by Ambac Assurance Corp. (Ambac; 'AAA' insurer financial strength rating). Although the rating is dependent on Standard&Poor's Ratings Services' rating of Ambac's insurer financial strength, the underlying transaction is of investment-grade quality, as illustrated by: A debt reserve fund of 2% of the principal balance of all the outstanding bonds; The overcollateralization; The excess spread within the trust; and The structural features that restrict proprietary and alternative loan originations, and limit recycling and withdrawal of funds. The series 2007 bonds will
