Moody's may cut SLM on reduced loan commitments

NEW YORK, Aug 28 (Reuters) - Moody's Investors Service said on Thursday it may cut its ratings on SLM Corp (SLM.N), after the student lender said it has reduced its commitment amounts on a number of loans.

SLM, also known as Sallie Mae, said on Thursday commitments under its private education loan asset backed commercial paper (ABCP) conduit facility have been reduced by around $2.2 billion.

"Private education loans are an increasingly important profit engine for the company, and a reduction in the ability to originate and fund these loans could be problematic," Moody's said in a statement.

SLM also said commitments under its federal family education loan program (FFELP) student loan ABCP conduit will also be reduced by around $4.1 billion on or before September 30.

"Moody's will evaluate SLM's business and funding plans regarding both private education loans and FFELP loans, including the company's progress in accessing term funding markets for ABS and potentially unsecured debt," the rating agency said.

Moody's currently rates SLM's senior unsecured debt "Baa2," the second lowest investment grade.

(Reporting by Karen Brettell; Editing by Diane Craft)