JACKSON — Fitch Ratings has affirmed 20 classes of senior bonds, removed the rating watch of “negative” and affirmed seven classes of subordinate bonds issued by Mississippi Higher Education Assistance Corporation (MHEAC) 1999 Trust. The rating outlook remains “stable” for the senior bonds.
The actions are based on the improving credit profile of the trust as reflected by the parity increase.
Fitch wrote: “The subordinated bonds were put on Rating Watch Negative on Jan. 30, 2009, because of decreasing parity due to auction rate failures and negative carry from significant amounts of cash in the redemption account. However, as of June 23, 2009, MHEAC has redeemed $164.4 million of bonds using the funds in the redemption account, including any unused recycling proceeds.
“The bonds were redeemed at a discount. As a result the total and senior parity has increased to 103.32 percent and 115.47 percent, respectively, for the distribution period ending Jun. 30, 2009, compared with 99.83 percent total parity and 109.49 percent senior parity when the subordinate bonds were place on Rating Watch Negative.”
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info