NEW YORK (Standard&Poor's) June 11, 2008--Standard&Poor's Ratings Services today lowered its short-term ratings on Pennsylvania Higher Education Assistance Agency's series 2006-A and 2007-A bonds to 'A-1' from 'A-1+'. The 'AA' long-term ratings on the bonds remain on CreditWatch negative (see list). The rating actions follow the June 2, 2008, lowering of the ratings on Morgan Stanley Bank (A+/Negative/A-1). The short-term rating assigned to these bonds reflects our opinion of Morgan Stanley Bank's ability, as the standby bond purchaser, to pay the purchase price (the principal amount plus accrued interest) when bondholders tender the bonds. The 'AA' long-term ratings on the bonds remain on CreditWatch negative, as those ratings are based on an unconditional, irrevocable financial guarantee
