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Fitch Rates South Carolina Student Loan Corp’s Educ Loan Revs

Fitch Rates South Carolina Student Loan Corp’s Educ Loan Revs

Business Editors

NEW YORK–(BUSINESS WIRE)–April 30, 2002

Fitch Ratings has assigned the following ratings to the bonds issued by the South Carolina Student Loan Corporation (SCSLC):

Ratings for new issuance:

–$160,000,000 taxable education loan revenue bonds, 2002 series L ‘AAA’;

–$50,000,000 taxable education loan revenue bonds, 2002 series CP ‘AAA’.

The following ratings have been affirmed:

— $200,000,000 taxable education loan revenue bonds, 2001 series L ‘AAA’;

— $200,000,000 taxable education loan revenue bonds, 2001 series CP ‘AAA’;

— $110,000,000 taxable education loan revenue bonds, 2000 series L ‘AAA’;

— $40,000,000 taxable education loan revenue bonds, 2000 series CP ‘AAA’.

–$150,000,000 taxable education loan revenue bonds, 1999 series ‘AAA’;

–$105,700,000 taxable education loan revenue bonds, 1998 series A-1 ‘AAA’;

–$105,700,000 taxable education loan revenue bonds, 1998 series A-2 ‘AAA’;

–$165,300,000 taxable education loan revenue bonds, 1997 series A-2 ‘AAA’;

–$80,000,000 taxable education loan revenue bonds, 1997 series A-3 ‘AAA’;

–$80,900,000 taxable education loan revenue bonds, 1996 series A-2 ‘AAA’;

–$85,000,000 taxable education loan revenue bonds, 1996 series A-3 ‘AAA’.

The ratings are based on the collateral quality, the reserve fund, the ability of the transaction to pass stressful cash flow tests at each rating level, and the sound legal structure. The reserve fund is equal to the greater of the sum of the reserve requirement of each previously issued bond series or 0.01% of the original amount of all bonds outstanding, with a $750,000 minimum. After issuance, there will be approximately $15.6 million, or 1.16% of bonds outstanding, held in the combined reserve fund. In addition, the ratings on the senior bonds are based upon the 5.91% in overcollateralization within the trust and any excess spread. The total credit enhancement will be equal to 7.07%.

The ratings address the ability of the trust to pay bonds at maturity and pay timely interest on each payment date. The ratings do not address the ability of auction rate bondholders to successfully redeem their bonds at an auction now or in the future.

The series 2002L and series 2002CP senior bonds bear interest at a variable rate equal to the 3-Month LIBOR (London Interbank Offered Rate) plus 15 bps and the 90-day ‘AA’ Financial Commercial Paper (CP) rate plus 24 bps, respectively.

The interest on the series 2002L LIBOR indexed bonds will be reset and paid quarterly while interest on the series 2002CP Commercial Paper indexed bonds will be reset monthly and paid quarterly.

The collateral securing the bonds consists of FFELP student loans. The FFELP loans are guaranteed 100% or 98% of principal and accrued interest by an eligible guarantor(s) depending on loan origination date and re-insured by the U.S. Department of Education (ED). In addition to FFELP loans, the resolution permits the inclusion of alternative loans, which are not eligible for federal insurance, with rating agency confirmation. There are currently no alternative loans in the collateral pool.

South Carolina State Education Assistance Authority is the guarantor and South Carolina Student Loan Corporation is the servicer for the student loan portfolio.

The South Carolina Student Loan Corporation is a non-profit, public benefit corporation incorporated on Nov. 15, 1973 under the laws of the State of South Carolina. SCSLC receives, disburses and administers funds exclusively for educational purposes and makes loans to students attending eligible post-secondary institutions that are South Carolina residents or attending South Carolina post-secondary institutions.

William R. Hough & Co. is the lead underwriter for the transaction.

For further information regarding the senior series 2002 bonds, please refer to South Carolina Student Loan Corporation’s presale report issued April 12, 2002. A copy of the report is available on Fitch Ratings’ web site at ‘www.fitchratings.com’ or by contacting Market Services at 1-800-853-4824.

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