Presale: Pennsylvania Higher Education Assistance Agency (Senior Series 2025-1A And Subordinate Series 2025-1C)

The preliminary ratings assigned to Pennsylvania Higher Education Assistance Agency's (PHEAA) $225.00 million education loan revenue bonds senior series 2025-1A and subordinate series 2025-1C tax-exempt AMT fixed-rate bonds (series 2025-1 bonds) reflect our view of: The availability of approximately 35.9% and 19.7% credit support for the 2025-1A and 2025-1C bonds, respectively, based on stressed break-even cash flow scenarios. These credit support levels provide coverage of at least 4.4x and 2.4x for the 2025-1A and 2025-1C bonds, respectively, of our base-case net loss in the 'AA' and 'BBB' stressed break-even cash flow scenarios (see the S&P Global Ratings' Expected Cumulative Default Rate and Break-Even Cash Flow Results sections). In the future, PHEAA may issue additional bonds out of this trust, which

...The preliminary ratings assigned to Pennsylvania Higher Education Assistance Agency's (PHEAA) $225.00 million education loan revenue bonds senior series 2025-1A and subordinate series 2025-1C tax-exempt AMT fixed-rate bonds (series 2025-1 bonds) reflect our view of: - The availability of approximately 35.9% and 19.7% credit support for the 2025-1A and 2025-1C bonds, respectively, based on stressed break-even cash flow scenarios. These credit support levels provide coverage of at least 4.4x and 2.4x for the 2025-1A and 2025-1C bonds, respectively, of our base-case net loss in the '##' and '###' stressed break-even cash flow scenarios (see the S&P Global Ratings' Expected Cumulative Default Rate and Break-Even Cash Flow Results sections). In the future, PHEAA may issue additional bonds out of this trust, which may affect the level of credit enhancement available to the bonds. - The transaction's expected initial senior and total bond parities at closing of at least approximately 145.6% and...

Presale Report