Pennsylvania Higher Education Assistance Agency ICR Lowered To 'AA-' From 'AA' On Declining Financial Ratios

NEW YORK (S&P Global Ratings) Nov. 16, 2018--S&P Global Ratings has lowered its issuer credit rating (ICR) on Pennsylvania Higher Education Assistance Agency (PHEAA) to 'AA-' from 'AA'. S&P Global Ratings also lowered its rating on PHEAA's series 2012 capital acquisition refunding bonds to 'AA-' from 'AA'. The outlook is negative. "The downgrade and negative outlook reflect continued declines in core financial ratios, including profitability and leverage," said S&P Global Ratings credit analyst Adam Torres. The ICR reflects our view of PHEAA's strengths: A dominant position in student lending; Status as one of only three companies with a servicer contract awarded by the U.S. Department of Education; and A large-balance Federal Family Education Loan Program (FFELP) portfolio, which we expect

...NEW YORK (S&P Global Ratings) Nov. 16, 2018--S&P Global Ratings has lowered its issuer credit rating (ICR) on Pennsylvania Higher Education Assistance Agency (PHEAA) to '##-' from '##'. S&P Global Ratings also lowered its rating on PHEAA's series 2012 capital acquisition refunding bonds to '##-' from '##'. The outlook is negative. "The downgrade and negative outlook reflect continued declines in core financial ratios, including profitability and leverage," said S&P Global Ratings credit analyst Adam Torres. The ICR reflects our view of PHEAA's strengths: + A dominant position in student lending; + Status as one of only three companies with a servicer contract awarded by the U.S. Department of Education; and + A large-balance Federal Family Education Loan Program (FFELP) portfolio, which we expect will continue generating low-risk cash flows. We believe that limited business diversity outside of the student loan industry constitutes a credit weaknesses. PHEAA is a public corporation created...

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