TEXT-S&P assigns Alaska Student Loan's 2012A revs

Thu Sep 6, 2012 3:59pm EDT

Sept 6 - Standard & Poor's Ratings Services today assigned its preliminary
'AA-/A-1+' rating to Alaska Student Loan Corp.'s (the issuer's) education loan
revenue refunding bonds senior series 2012A due Dec. 1, 2043.

The preliminary rating is based on information as of Sept. 6, 2012. Subsequent 
information may result in the assignment of final ratings that differ from the 
preliminary ratings.

The preliminary rating reflects our opinion of the credit and liquidity 
support that State Street Bank and Trust Co. (State Street; 'AA-/A-1+') 
provides in the form of an irrevocable direct-pay letter of credit (LOC). 
Under the LOC, State Street fully supports all bond payment obligations when 
the bonds are in the weekly and monthly interest rate reset modes. Therefore, 
our preliminary rating applies only during these rate modes. If the bonds are 
converted to another rate mode, we will likely withdraw our rating. 
 
The 'AA-' long-term component of our preliminary rating is based on our 
long-term issuer credit rating on State Street ('AA-') and addresses full and 
timely payments of interest and principal when the bondholders have not 
exercised the put option. The 'A-1+' short-term component of our preliminary 
rating is based on our short-term issuer credit rating on State Street 
('A-1+') and addresses full and timely payments of interest and principal when 
the bondholders have exercised the put option.

In view of the senior series 2012A bond structure, changes to our rating on 
the weekly and monthly rate bonds can result from, among other things, changes 
to our rating on the LOC provider or amendments to the transaction's terms. We 
will maintain a rating on the bonds as long as they are in the weekly or 
monthly rate modes and the LOC has not expired or otherwise terminated. If 
either of these conditions changes, we will likely withdraw our rating on the 
bonds.

RELATED CRITERIA AND RESEARCH
     -- Presale: Alaska Student Loan Corp. - Series 2012A, Sept. 6, 2012
     -- State Street Corp., June 29, 2012
     -- Counterparty Risk Framework Methodology and Assumptions, May 31, 2012
     -- Global investment Criteria for Temporary Investments In Transaction 
Accounts, May 31, 2012
     -- Methodology And Assumptions: Approach To Evaluating Letter Of 
Credit-Supported Debt, July 6, 2009
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