NEW YORK Feb 14 Rating agency Standard & Poor's
on Thursday revised SLM Corp's outlook to negative from
stable on worries about the potential for future reductions in
S&P also affirmed SLM's BBB-minus rating.
While a recent sale of residual interests in the SLM Student
Loan Trust securitization 2007-4 was modest, "we believe this
represents a shift in the company's strategy related to its
Federal Family Education Loan Program (FFELP) portfolio," the
ratings agency said in a statement.
"The negative outlook reflects our belief that SLM could
undertake additional similar transactions, which would reduce
future cash flows from the company's FFELP portfolio."
On Wednedsay, SLM Corp, better known as Sallie Mae, said it
had sold the residual interest in its SLM Student Loan Trust
2007-4 securitization to a third party.
The gain from the transaction would add 8 cents to Sallie
Mae's 2013 GAAP and core earnings per share, the company said.
"We believe yesterday's transaction was positive for the
company, and we will continue to work closely with S&P as well
as the other ratings agencies so they completely understand our
strategy," Patricia Nash Christel, a spokeswoman for SLM Corp,
told Reuters late on Thursday.