(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: Cash Flow Analysis of Navient
(Updated Cash Flow Projections Post Separation)
CHICAGO, May 22 (Fitch) Navient Corporation's (Navient) expected
cash flows from
the runoff portfolio and fee-based businesses would be
sufficient to repay $18
billion in existing senior unsecured debt under a single factor
according to Fitch Ratings.
This according to Fitch's analysis of Navient's (rated 'BB' with
Outlook) $130 billion legacy FFELP and private student loan
said, Navient's ability to repay debt in full would come under
pressure in a
scenario where multiple stress factors are simultaneously
Following the strategic separation of Navient from SLM
Corporation (SLM) in
April, Fitch assigned a new 'BB' IDR to Navient and transferred
unsecured debt ratings to Navient at 'BB'. Per the terms of the
SLM's existing public unsecured debt was assumed by Navient.
Ratings assigned to Navient's outstanding debt reflect continued
regarding the long-term strategic direction of the company.
believes the run-off cash flow analysis provides a degree of
to debt holders.
The full report 'Cash Flow Analysis of Navient Corporation' is
'www.fitchratings.com' or by clicking on the above link. This
Fitch's earlier analysis of SLM Corporation published in July
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