NEW YORK--(BUSINESS WIRE)--Fitch Ratings affirms the long- and short-term ratings of the Minnesota Office of Higher Education's supplemental student loan program revenue bonds, 2008 series A (taxable) and series B (tax-exempt). A full rating list is provided at the end of this release.
The ratings are based on the support provided by a direct-pay letter of credit (LOC) issued by U.S. Bank, N.A. (U.S. Bank), providing full support to the bonds. U.S. Bank is obligated to make payments of principal and interest on the bonds upon maturity, acceleration and redemption, as well as the purchase price for tendered bonds. The current rating on U.S. Bank, N.A. is 'AA-/F1+'; Outlook Stable.
The rating will expire on the earliest to occur of: (1) Oct. 1, 2014 - which is the stated expiration date of the LOC - unless such date is extended; (2) any prior termination of the LOC; or (3) defeasance of the bonds.
Fitch has taken the following rating actions:
Minnesota Office of Higher Education 2008
--2008A (taxable) notes affirmed at 'AA-/F1+'; Outlook Stable;
--2008B (tax-exempt) notes affirmed at 'AA-/F1+'; Outlook Stable.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Rating Guidelines for Letter of Credit-Supported Bonds' dated June 14, 2013.
Applicable Criteria and Related Research:
Rating Guidelines for Letter of Credit-Supported Bonds
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710476
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=800296
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