TEXT-S&P rates Northstar Student Loan 2012A bonds 'AA-/A-1+'
Oct 25 - Standard & Poor's Ratings Services today assigned its 'AA-/A-1+' rating to NorthStar Student Loan Trust II's (the issuer's) adjustable-rate student loan revenue bonds series 2012A. The rating reflects our opinion of the credit and liquidity support that Royal Bank of Canada ('AA-/A-1+') provides in the form of an irrevocable direct-pay letter of credit (LOC). Under the LOC, Royal Bank of Canada fully supports all bond payment obligations when the bonds are in the weekly interest rate reset mode. Therefore, our rating applies only during this rate mode. If the bonds are converted to another rate mode, we will likely withdraw our rating. The 'AA-' long-term component of our rating is based on our long-term issuer credit rating on Royal Bank of Canada ('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 rating is based on our short-term issuer credit rating on Royal Bank of Canada ('A-1+') and addresses full and timely payments of interest and principal when the bondholders have exercised the put option. In view of the series 2012A bond structure, changes to our rating on the weekly 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 rate mode 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 Related Criteria -- Counterparty Risk Framework Methodology and Assumptions, May 31, 2012 -- Methodology And Assumptions: Approach To Evaluating Letter Of Credit-Supported Debt, July 6, 2009 Related Research -- Presale: Northstar Student Loan Trust II - Series 2012A, Oct. 24, 2012 -- Royal Bank Of Canada, Feb. 15, 2012
- Total CEO de Margerie killed in Moscow as jet hits snow plow |
- Pistorius starts five-year term for killing Reeva Steenkamp
- Ebola crisis turns a corner as U.S. issues new treatment protocols
- Fashion designer Oscar de la Renta dead at 82 |
- U.S. Congress examining deal between NSA official, ex-agency chief