Fitch downgrades VSAC 1995 education loan revenue bonds from AA+ to AA-

first_imgFitch Ratings downgrades the ratings on the education loan revenue bonds issued by Vermont Student Assistance Corporation (VSAC) issued under the 1995 General Resolution. The rating is removed from Rating Watch Negative and a Stable Outlook is assigned to the bonds. A complete list of the ratings is shown below.The rating downgrades are based on loss coverage multiples and on the level of credit enhancement that is available to absorb the applicable basis risk factor stress level after accounting for the trust’s cost structure and its ability to generate excess spread towards the tail end of the transaction. Credit was given to the increased credit enhancement provided by VSAC’s purchase of bonds at a discount since March 2010, as reflected by the trust’s 107.03% senior parity ratio. Although senior bond payments are guaranteed by AMBAC Indemnity Corporation (AMBAC), no credit was given to this guarantee, as Fitch has withdrawn the ratings on AMBAC.The collateral securing the bonds contains 78.27% Federal Family Education Loan Program (FFELP) Student Loans and 21.73% private student loans. For the portion of the trust backed by private student loans, loss coverage multiples were determined by comparing projected net loss amounts to available credit enhancement based on the collateral performance data as of Dec. 31, 2010. Credit enhancement includes overcollateralization, a reserve fund, and projected excess spread. Fitch assumed excess spread to be the lesser of the average historical excess spread (earning on the assets minus interest payments to bondholders and fees) and the most recent 12-month average excess spread, and applied that same rate over the stressed projection of remaining life.In its analysis, Fitch used data provided by VSAC to form a loss timing curve for the transaction’s loan pool. A projected net loss amount was compared to available credit enhancement to determine the loss multiple. After giving credit for seasoning of loans in repayment, Fitch applied the current cumulative gross loss level to this loss timing curve to derive the expected gross losses over the remaining life of the trust. A recovery rate was applied based on the latest data provided by the issuer. The collateral performance for the trust has been consistent with expectations from a net default perspective.The trust may release cash to the issuer when senior parity is 103% or greater, and upon receiving approval from AMBAC. Fitch calculated the current loss coverage multiples based on the trust’s current senior parity ratio of 107.03%. If any cash is released from the trust, this would decrease the current level of available credit enhancement and may cause further rating actions to be taken.Fitch downgrades and assigns a Stable Outlook to Vermont Student Assistance Corporation 1995 General Resolution education loan revenue bonds:–Series 1995-A downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1995-B downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1995-C downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1996-F downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1996-G downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1996-H downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1998-K downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1998-L downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 1998-M downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2000-R downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2000-S downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2000-T downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2001-V downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2001-W downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2001-X downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2001-Y downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2001-Z downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2001-AA downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2002-BB downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2002-CC downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2002-DD downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2003-FF downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2003-GG downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2003-HH downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2003-II downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2003-JJ downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2003-KK downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2003-LL downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2004-MM downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2004-NN downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2004-OO downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2004-PP downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2005-RR downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2005-SS downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2006-UU downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2006-VV downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2007-WW downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2007-XX downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook;–Series 2007-YY downgraded to ‘AA-‘ from ‘AA+’, Stable Outlook.The subordinate series 1998-O bonds have been paid in full.Additional information is available at ‘ is external)’.Applicable Criteria and Related Research:–‘U.S. Private Student Loan ABS Criteria’ Aug. 24, 2009;–‘Global Structured Finance Rating Criteria’ dated Aug. 13, 2010;–‘Fitch to Begin Review of U.S. FFELP SLABS Applying Updated Criteria’ dated June 29, 2010;–‘Rating US Federal Family Education Loan Program Student Loan ABS’, dated April 11, 2008.Applicable Criteria and Related Research:Global Structured Finance Rating Criteria…(link is external)U.S. Private Student Loan ABS Criteria…(link is external)ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM’. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.  NEW YORK–(BUSINESS WIRE)–last_img read more

Focus: Why your smart phone is a great companion for vacations

first_imgIf you have a vacation planned in the upcoming months, then it is imperative you bring along your smart phone. These devices are not only very useful for your trip itself, they are also great tools to stay connected with your every day life while on holiday. In this article, we will go through some of the reasons that smart phones are such great companions for your vacations. – Advertisement –last_img

McCue: Streaky shooting dangerous trend for NCAA tourney

first_imgSomething strange happened Sunday on the Kohl Center floor as Wisconsin brought down a pesky Penn State squad 52-46.The rare and recently absent occurrence was that the Badgers finally proved they hadn’t completely lost their stroke. They could still hit 15-footers from the floor and build a lasting rhythm from beyond the 3-point arc. While Wisconsin fans may have released a long sigh of relief after the Badgers netted 48 percent of their shots in the first half from the floor and 42.6 percent in the game, it cemented the fact that UW will only go as far as its shooting takes it as March Madness grows nearer.The solid shooting performance against the Nittany Lions followed a five-game stretch during which Bo Ryan’s squad averaged a field goal percentage a hair under 37 percent. That undesired run was capped by a beatdown in East Lansing at Michigan State when Wisconsin sunk just 34 percent of its shots. If fans learned anything in these games when they weren’t busy throwing objects at their televisions, it was the vulnerability that any team that relies so heavily on outside shooting suffers from.Although the Badgers are well on their way to another overachieving season – locking up their 20th victory Sunday and currently sitting at fourth in the Big Ten standings – don’t expect a deep tournament run. An opening round win is nearly a sure bet, as Wisconsin is projected by ESPN’s Joe Lunardi to earn a No. 4 seed and likely won’t be any lower than a fifth seed. However, its streakiness shooting the rock will likely spell doom in the one-and-done NCAA Tournament.Perhaps the hot shooting against Penn State – which included five straight 3-pointers by the Badgers midway through the first half – was just the beginning of a hot-handed run that will have Jordan Taylor & Co. dancing through one of the most unpredictable events in sports. But count me out of that optimistic group.Unless Taylor channels last year’s “let me take care of this one, fellas” mentality and starts once again hitting outrageous threes with a defender in his face, the quality teams the Badgers are bound to face in March know the key to shutting down the Wisconsin offense is to take away open outside looks. The only way to avoid such a fate is if a player like Ryan Evans or Mike Bruesewitz rediscovers an offensive rhythm and proves they are a consistent, dangerous threat from outside.If history is any indication of how Wisconsin will fare in the all-important season finale, then Ryan’s team is bound to have a night where the net eludes them and his team struggles through costly scoring droughts. Since the Badgers started playing competitive teams, which, by my estimation, started with Bradley (sorry Kennesaw State), they have never managed to string together more than four games in a row shooting at least 40 percent from the field. That stretch itself came against the rather underwhelming likes of UW-Milwaukee, Savannah State, Mississippi Valley State and Big Ten bottom-feeder Nebraska.Even more disheartening is that, since conference play began Dec. 27, the Badgers have not put together more than two consecutive games where they nailed at least 40 percent of their jumpers. And it’s not like sinking four out of every 10 shots is a proven formula for victory. It’s respectable, but not exactly lighting up the court (for comparison, Creighton leads the nation with a stellar 51.1 percent clip from the floor).What’s kept Wisconsin in the top 25 polls this season is something that has become a staple of Ryan-coached teams – defense. More specifically, refusing to give up easy, uncontested looks to opponents and forcing gritty, often ugly defensive battles. After leading the nation in field goal percentage defense for much of the year, the Badgers currently rank fifth by holding opponents to a 37.4 conversion rate and also lead the nation in scoring defense.The ability to slow down even the most fleet-footed of offenses can be credited to ability of players like Evans and Jared Berggren – who leads the team with 45 blocks on the year – to step up on the defensive end of the floor. Defense is an aspect of the game UW fans have learned to respect after seeing their team appear in the NCAA tournament all 10 seasons Ryan has colored the Wisconsin sideline with his always-entertaining faces.But there’s just one problem. As Wisconsin faces unfamiliar teams from conferences like the ACC and Big East with entirely different styles of play, its ability to defend the shot will probably be a greater challenge. Additionally, post powers such as Michigan State’s Draymond Green and Ohio State’s Jared Sullinger have confirmed Badgers fans’ fear that their team has no answer to high-percentage scorers who get their points near the hoop.Wisconsin has managed to eek out wins when the shots aren’t falling – against Minnesota (35.8 percent), Nebraska (31.3) and Penn State the first time around (35.4) – but it’s no coincidence that those squads stand respectively at No. 9, 11 and 12 in the Big Ten race. It remains impressive and serves as a testament to Ryan’s coaching that, even without the much-anticipated scoring output from preseason All-American Taylor, UW remains in the conference title race this late in the year.It’s been a season of highs and lows, with nights of stellar shooting and ones where it seemed like a plastic shell guarded the rim. Such streaky shooting teams simply aren’t the ones that find themselves on historical, thrilling rides in the NCAA men’s basketball tournament.Ian is a junior majoring in journalism. Think he’s nothing more than a pessimist who sees the worst in every Badgers’ team, regardless of sports? Let him know by tweeting @imccue.last_img read more