Standard & Poor's revises SLM Corp's outlook to negative

NEW YORK: Rating agency Standard & Poor's on Thursday revised SLM Corp's outlook to negative from stable on worries
15 Feb, 2013

 


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 is modest, "we believe this represents a shift in the company's strategy related to its Federal Family Education Loan Program (FFELP) portfolio," the rating 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."




Copyright Reuters, 2013

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