Fitch Ratings will be rating the Pennsylvania Higher Education Assistance Agency (PHEAA) Series 2009-1 FRN student loan ABS notes, Series 2009-1. 

The transaction will comprise of Libor floating rate  class A-1 notes worth $196,200,000. Fitch expects to rate this class 'AAA'/'LS1' with an Outlook Stable.

According to a Fitch presale report, proceeds from the sale of the notes will be utilized to refinance portions of certain outstanding indebtedness of PHEAA via the release of certain student loans pledged to the notes. The notes, which are FFELP-backed loans originated or acquired by PHEAA, represent a discrete financing.

The FFELP student loan collateral is guaranteed by eligible guarantors and reinsured for at least 97% of principal and accrued interest by the U.S. Department of Education, Fitch noted. In terms of servicing capabilities, the deal's day-to-day servicing will be provided by PHEAA, which, the rating agency said, has demonstrated adequate servicing capabilities with historically low reject rates.

Preliminary details on the transaction are available via the link below from the ASR Scorecard database.


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