NEW YORK (Standard&Poor's) July 23, 2008--Standard&Poor's Ratings Services today assigned its ratings to Vermont Student Assistance Corp.'s $113.05 million education loan revenue bonds senior series 2008A-1 (see list). The ratings are based on the irrevocable, direct-pay letter of credit (LOC) provided by KeyBank N.A. The ratings apply to the bonds when they are in the daily, weekly, and monthly interest rate modes. The long-term 'A' rating reflects the likelihood that principal and interest will be paid to maturity based primarily on KeyBank's credit support. The short-term 'A-1' rating reflects the likelihood of repayment based on the liquidity support that the LOC provides for optional and mandatory tenders. The LOC provides coverage for all principal and interest
