July 2, 2012 / 9:16 PM / 5 years ago

TEXT-S&P affirms 72 ratings on R.I. Student Loan Auth 2008, 2009

OVERVIEW
     -- We reviewed the nine ratings on the bonds issued by Rhode Island 
Student Loan Authority's 2008 indenture and 63 ratings issued by Rhode Island 
Student Loan Authority's 2009 indenture. All of the bonds are backed by a pool 
of private student loan collateral.
     -- We affirmed the 'AAA (sf)' ratings on all of the senior bonds and the 
'A (sf)' ratings on the subordinate bonds for the 2008 senior series A and 
2008 subordinate series I bonds issued under the April 1, 2008, indenture due 
to continued stable performance of the underlying loans and current parity 
levels.
     -- We affirmed the 'A+ (sf)' ratings on all of the bonds issued in the 
2009 senior series A, 2010 senior series A, 2010 senior series B and 2012 
senior series A under the June 1, 2009, indenture due to continued stable 
performance of the underlying loans and current parity levels.

NEW YORK (Standard & Poor's) July 2, 2012--Standard & Poor's Ratings Services 
today affirmed its ratings on all of the bonds issued by Rhode Island Student 
Loan Authority (RISLA) under the transaction's 2008 (RISLA 2008) and 2009 
(RISLA 2009) trust indentures (see list).

The affirmations of the ratings on the bonds in RISLA 2008 reflect our view of 
the collateral's performance, which remains in line with our expected 
cumulative default assumptions, as evidenced by very low cumulative defaults. 
Additionally, the trust currently has relatively low delinquency and 
forbearance levels, and parity levels have increased since closing. We believe 
the available credit enhancement level is sufficient to support the bonds at 
their current ratings. 

RISLA 2008 has experienced 15 quarters of performance. The trust was 100% 
prefunded at issuance, and the prefunding period ended Sept. 30, 2009. Most of 
loans were made to borrowers that were in school. As of the March 31, 2012, 
servicer report, 39% of the borrowers are still in school or in their grace 
period. Of the loans in repayment, 64% of the borrowers have made fewer than 
13 payments. 

In our opinion, this trust is at the beginning of its default curve, as the 
majority of the pool is either not in repayment or just starting their time in 
repayment. Accordingly, cumulative defaults are approximately 1%, which is low 
compared with our base-case expectation of 9% at closing. This trust has other 
positive loan attributes, such as low levels of loans in forbearance (0.85%), 
and 90-plus-days delinquent (0.15%) status. Additionally, the loan eligibility 
criteria for this trust required at least 90% of the pool to be cosigned, and 
the weighted average FICO of the loan pool to be at least 725. Credit 
enhancement has increased since closing as indicated by rising parity levels. 
The senior parity has risen to 129% from approximately 121% and the total 
parity has risen to 120% from approximately 113%. 

On March 21, 2012, we rated the 2012 senior series A bonds issued from RISLA 
2009. As part of that process, we ran cash flows and evaluated the ratings on 
the bonds in the entire trust. Based on that analysis, we are affirming the 
ratings.

Standard & Poor's will continue to monitor the performance of the student loan 
receivables backing these trusts relative to its cumulative default 
expectations and its assessment of the credit enhancement available to the 
bonds.

STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating 
relating to an asset-backed security as defined in the Rule, to include a 
description of the representations, warranties and enforcement mechanisms 
available to investors and a description of how they differ from the 
representations, warranties and enforcement mechanisms in issuances of similar 
securities. The Rule applies to in-scope securities initially rated (including 
preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & 
Poor's 17g-7 Disclosure Reports included in this credit rating report are 
available atRELATED CRITERIA AND RESEARCH
     -- Presale: Rhode Island Student Loan Authority - Series 2012 A, 
published Feb. 2, 2012.
     -- Global Structured Finance Scenario And Sensitivity Analysis: The 
Effects Of The Top Five Macroeconomic Factors, published Nov. 4, 2011.
     -- Principles Of Credit Ratings, published Feb. 16, 2011.
     -- Ratings Affirmed On 11 Municipal Issuer ABS Trusts Backed By Private 
Student Loan Collateral, published Nov. 2, 2010.
     -- Methodology: Credit Stability Criteria, published May 3, 2010.
     -- Presale: Rhode Island Student Loan Authority, published April 25, 2008.
     -- Student Loan Criteria: Rating Methodology For Student Loan 
Transactions, published Oct. 1, 2004. 
     -- Student Loan Criteria: Structural Elements In Student Loan 
Transactions, published Oct. 1, 2004. 
     -- Student Loan Criteria: Student Loan Programs, published Oct. 1, 2004.
     -- Student Loan Criteria: The Rating Process For Student Loan 
Transactions, published Oct. 1, 2004.
 
 
RATINGS AFFIRMED

Rhode Island Std Loan Auth
US$64 mil student loan revenue program bonds series 2008

Series     CUSIP          Maturity         Rating

2008 A     762315HM4      12/1/2013        AAA (sf)
2008 A     762315HN2      12/1/2014        AAA (sf)
2008 A     762315HP7      12/1/2015        AAA (sf)
2008 A     762315HQ5      12/1/2016        AAA (sf)
2008 A     762315HR3      12/1/2017        AAA (sf)
2008 A     762315HS1      12/1/2018        AAA (sf)
2008 A     762315HT9      12/1/2023        AAA (sf)
2008 A     762315HU6       6/1/2028        AAA (sf)
2008 I     762315HV4      12/1/2028        A (sf)

Rhode Island Std Loan Auth
US$25.57 mil student loan program revenue bonds 2009 senior series A bonds

Series     CUSIP          Maturity         Rating

2009 A     762315JK6      12/1/2013        A+ (sf)
2009 A     762315JL4      12/1/2014        A+ (sf)
2009 A     762315JM2      12/1/2015        A+ (sf)
2009 A     762315JN0      12/1/2016        A+ (sf)
2009 A     762315JP5      12/1/2017        A+ (sf)
2009 A     762315JZ3      12/1/2017        A+ (sf)
2009 A     762315JQ3      12/1/2018        A+ (sf)
2009 A     762315JR1      12/1/2019        A+ (sf)
2009 A     762315KA6      12/1/2019        A+ (sf)
2009 A     762315JS9      12/1/2020        A+ (sf)
2009 A     762315JT7      12/1/2021        A+ (sf)
2009 A     762315JU4      12/1/2022        A+ (sf)
2009 A     762315JV2      12/1/2023        A+ (sf)
2009 A     762315JW0      12/1/2024        A+ (sf)
2009 A     762315JX8      12/1/2025        A+ (sf)
2009 A     762315KB4      12/1/2027        A+ (sf)
2009 A     762315JY6      12/1/2029        A+ (sf)
2009 A     762315KD0      12/1/2027        A+ (sf)
2009 A     762315KC2      12/1/2030        A+ (sf)

Rhode Island Std Loan Auth
US$16.97 mil student loan program revenue bonds 2010 senior series A

Series     CUSIP          Maturity         Rating

2010 A     762315KE8      12/1/2013        A+ (sf)
2010 A     762315KF5      12/1/2014        A+ (sf)
2010 A     762315KG3      12/1/2015        A+ (sf)
2010 A     762315KH1      12/1/2016        A+ (sf)
2010 A     762315KJ7      12/1/2017        A+ (sf)
2010 A     762315KK4      12/1/2018        A+ (sf)
2010 A     762315KL2      12/1/2019        A+ (sf)
2010 A     762315KM0      12/1/2020        A+ (sf)
2010 A     762315KN8      12/1/2021        A+ (sf)
2010 A     762315KP3      12/1/2022        A+ (sf)
2010 A     762315KQ1      12/1/2023        A+ (sf)
2010 A     762315KR9      12/1/2024        A+ (sf)
2010 A     762315KS7      12/1/2025        A+ (sf)
2010 A     762315KT5      12/1/2026        A+ (sf)
2010 A     762315KU2      12/1/2027        A+ (sf)

Rhode Island Std Loan Auth
US$25.57 mil Rhode Island Student Loan Authority 2010 Senior Series B
 
Series     CUSIP          Maturity         Rating

2010-SS-B  762315KY4      12/1/2012        A+ (sf)                
2010-SS-B  762315KZ1      12/1/2013        A+ (sf)                
2010-SS-B  762315LA5      12/1/2014        A+ (sf)                
2010-SS-B  762315LB3      12/1/2015        A+ (sf)                
2010-SS-B  762315LC1      12/1/2016        A+ (sf)                
2010-SS-B  762315LD9      12/1/2017        A+ (sf)                
2010-SS-B  762315LE7      12/1/2018        A+ (sf)                
2010-SS-B  762315LF4      12/1/2019        A+ (sf)                
2010-SS-B  762315LG2      12/1/2020        A+ (sf)                
2010-SS-B  762315LH0      12/1/2021        A+ (sf)                
2010-SS-B  762315LJ6      12/1/2022        A+ (sf)                
2010-SS-B  762315LK3      12/1/2023        A+ (sf)                
2010-SS-B  762315LL1      12/1/2024        A+ (sf)                
2010-SS-B  762315LM9      12/1/2025        A+ (sf)                
2010-SS-B  762315LN7      12/1/2026        A+ (sf) 


Rhode Island Std Loan Auth
US$17.94 mil student loan program revenue bonds

Series     CUSIP          Maturity         Rating
2012-SS-A  762315LQ0      12/1/2013        A+ (sf)             
2012-SS-A  762315LR8      12/1/2014        A+ (sf)             
2012-SS-A  762315LS6      12/1/2015        A+ (sf)             
2012-SS-A  762315LT4      12/1/2016        A+ (sf)             
2012-SS-A  762315LU1      12/1/2017        A+ (sf)             
2012-SS-A  762315LV9      12/1/2018        A+ (sf)             
2012-SS-A  762315LW7      12/1/2019        A+ (sf)             
2012-SS-A  762315LX5      12/1/2020        A+ (sf)             
2012-SS-A  762315LY3      12/1/2021        A+ (sf)             
2012-SS-A  762315LZ0      12/1/2022        A+ (sf)             
2012-SS-A  762315MA4      12/1/2023        A+ (sf)             
2012-SS-A  762315MB2      12/1/2024        A+ (sf)             
2012-SS-A  762315MC0      12/1/2025        A+ (sf)             
2012-SS-A  762315MD8      12/1/2026        A+ (sf)

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