The Higher Education Loan Authority of the State of Missouri plans to issue a $970.8 million Federal Family Education Loan Program (FFELP) –backed student loan securitization deal.

Standard & Poor’s and Fitch Ratings assigned the floating rate notes issued under the deal, Series 2013-1, a preliminary ratings of ‘AA+’/ ‘AAA’ respectively.   
The deal is backed by a pool of FFELP student loans, which are loans that are indirectly guaranteed by the U.S. Department of Education for a minimum of 97% of defaulted principal and accrued interest, according to a deal memorandum.

Fitch said in its presale report on the deal that the trust includes 2.2% of rehabilitation FFELP loans with guaranties provided by eligible guarantors.

Morgan Stanley is lead underwriter on the deal.

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