S&P Global Ratings has affirmed its 'AA' issuer credit rating (ICR) on Pennsylvania Higher Education Assistance Agency (PHEAA). At the same time, S&P Global Ratings affirmed its 'AA' long-term rating on PHEAA's series 2012 capital acquisition refunding bonds. The outlook is stable. The ICR reflects our view of PHEAA's following strengths: A dominant position in student lending; The agency's status as one of only four 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 credit weaknesses include: Exposure to balance of unsecured commercial loans; and Limited business diversity outside the student loan industry. PHEAA is a
