Fitch Ratings revises the Rating Outlooks on all notes issued under the Connecticut Higher Education Supplemental Authority (CHESLA) 1990 amended and restated 1996 Resolution (the bonds) to Negative from Stable. Fitch also assigns a Negative Outlook to the series 2009 bonds. The ratings for all series issued under the indenture are based on the support provided by a Special Capital Reserve Fund (SCRF), which is rated 'AA-' by Fitch, one notch below the 'AA' rating for the State of Connecticut's general obligations (GOs). On Nov. 5, 2009, Fitch assigned a Negative Outlook to Connecticut's GOs. The action on the bonds is based on Fitch's Global Structured Finance Rating Criteria.
The SCRF is established for the benefit of each series of bonds under the Connecticut Higher Education Supplemental Loan Authority Act (the Act). The Act requires that, on or before Dec. 1, 2009 the state of Connecticut is obligated to appropriate funds from the state general fund to replenish the SCRF to its requirement. The obligation to fund SCRF is a statutory commitment of the state. Each series has its own designated SCRF, and the SCRF requirement is defined as the lesser of the sum of each series SCRF requirements and annual principal and interest due on the bonds for the following year.
Fitch revises the Outlook to Negative from Stable for the following bonds:
--Series 1998, 'AA-';
--Series 1999, 'AA-';
--Series 2000, 'AA-';
--Series 2001, 'AA-'.
Fitch assigns Negative Outlooks to the following:
--Series 2009, 'AA-'.
The following applicable criteria report is available on Fitch's web site at 'www.fitchratings.com': 'Global Structured Finance Rating Criteria' dated Sept. 30, 2009.
Additional information is available at www.fitchratings.com
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Contacts:
Fitch Ratings, New York
Paul Landerman, 212-908-0876
Aoto
Kenmochi, 212-908-0867
or
Media Relations:
Sandro Scenga,
212-908-0278
Email: sandro.scenga@fitchratings.com
