Four months after downgrading U.S. Treasury bonds, Standard & Poor's has lowered or affirmed fewer than half of the highest-rated ABS guaranteed by the now-defunct Federal Family Education Loan Program (FFELP).

However, the concerns market participants had then about potentially facing split ratings on their holdings have not materialized. Additionally, despite the strong possibility of more U.S. Treasury downgrades, government-backed SLABS are still viewed as a safe haven, and certainly safer than ABS stemming from the private student loan market.

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