Pennsylvania Higher Education Assistance Agency/The


CUSIP 709159CQ8
  • Issue Currency: United States of America Dollars
  • Announcement Date: 16-Nov-2018
  • News: S&P Global Ratings has lowered its issuer credit rating (ICR) on Pennsylvania Higher Education Assistance Agency (PHEAA) to `AA-` from `AA`. S&P Global Ratings also lowered its rating on PHEAA`s series 2012 capital acquisition refunding bonds to `AA-` from `AA`. The outlook is negative. The downgrade and negative outlook reflect continued declines in core financial ratios, including profitability and leverage, especially as these metrics compare with peers`. Specifically, profitability as measured by return on average assets was 0.36% in 2018, while leverage (equity to assets) was 3.9%. These figures were 0.97% and 10.8%, respectively, in 2017. These results are primarily due to PHEAA`s asset base continuing in runoff mode, following the conclusion of the federal government`s Federal Family Education Loan Program (FFELP)
CUSIP 709159CR6
  • Issue Currency: United States of America Dollars
  • Announcement Date: 16-Nov-2018
  • News: S&P Global Ratings has lowered its issuer credit rating (ICR) on Pennsylvania Higher Education Assistance Agency (PHEAA) to `AA-` from `AA`. S&P Global Ratings also lowered its rating on PHEAA`s series 2012 capital acquisition refunding bonds to `AA-` from `AA`. The outlook is negative. The downgrade and negative outlook reflect continued declines in core financial ratios, including profitability and leverage, especially as these metrics compare with peers`. Specifically, profitability as measured by return on average assets was 0.36% in 2018, while leverage (equity to assets) was 3.9%. These figures were 0.97% and 10.8%, respectively, in 2017. These results are primarily due to PHEAA`s asset base continuing in runoff mode, following the conclusion of the federal government`s Federal Family Education Loan Program (FFELP). The ICR reflects our view of PHEAA`s strengths: A dominant position in student lending; Status as one of only three companies with a servicer contract awarded by the U.S. Department of Education (down from four the previous year); and A large-balance FFELP portfolio, which we expect will continue generating low-risk cash flows
CUSIP 709159CS4
  • Issue Currency: United States of America Dollars
  • Announcement Date: 16-Nov-2018
  • News: S&P Global Ratings has lowered its issuer credit rating (ICR) on Pennsylvania Higher Education Assistance Agency (PHEAA) to `AA-` from `AA`. S&P Global Ratings also lowered its rating on PHEAA`s series 2012 capital acquisition refunding bonds to `AA-` from `AA`. The outlook is negative. The downgrade and negative outlook reflect continued declines in core financial ratios, including profitability and leverage, especially as these metrics compare with peers`. Specifically, profitability as measured by return on average assets was 0.36% in 2018, while leverage (equity to assets) was 3.9%. These figures were 0.97% and 10.8%, respectively, in 2017. These results are primarily due to PHEAA`s asset base continuing in runoff mode, following the conclusion of the federal government`s Federal Family Education Loan Program (FFELP). The ICR reflects our view of PHEAA`s strengths: A dominant position in student lending; Status as one of only three companies with a servicer contract awarded by the U.S. Department of Education (down from four the previous year); and A large-balance FFELP portfolio, which we expect will continue generating low-risk cash flows



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