The pace of student loan asset-backed securitization is on track to beat Standard & Poor’s expectations for full-year 2013, with Federal Family Education Loan Program-backed deals dominating new issues.
S&P said that the annualized year-to-date pace of student loan ABS issuance stands above its full-year forecast of $25 billion. That figure includes both projected issuance of private student loan backed deals and FFELP deals.
The ratings agency assigned preliminary ratings to two deals this week, one FFLEP-backed deal and one backed by private student loans, which bring year-to-date volume to $11 billion.
Today S&P assigned ‘AA+’ ratings to the class A notes issued from Educational Services of America’s $600 million FFLEP–backed deal, Edsouth Indenture No. 4 LLC (Series 2013-1). The class B notes have issued under the capital structure have been assigned a ‘A’.
Morgan Stanley and BMO Capital Markets are lead managers of the deal.
Earlier in the week the ratings agency assigned preliminary rating to the New Jersey Higher Education Student Assistance Authority's $200 million private student loan deal. S&P said in its pre-sale report that the deal is backed by private fixed-rate student loans made under the issuer’s NJCLASS loan program.
The capital structure class A notes will are rated ‘AA’ and the class B note have been rated ‘A’.