Fitch revises FFELP ABS outlook to negative

Student loan
By Jennifer Kang
11 Aug 2020

Fitch Ratings downgraded the rating outlook on Federal Family Education Loan Program (FFELP) student loan ABS sector from stable to negative, reflecting the ongoing deterioration of the US public finance and the absence of a credible fiscal consolidation plan, the rating agency said.

The ratings revision affects 362 AAA-rated tranches worth $57bn, and follows the downgrade of the US sovereign rating outlook on July 31. The US sovereign rating has been placed on negative from stable.

FFELP student loans are guaranteed against default by a third party guarantor for at ...

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