Last Friday on
Importantly, we believe these transactions will provide a framework (e.g. structure, valuation) which may set a precedent for more banks and not-for-profit companies to sell their FFELP assets. We believe logical buyers include Navient Corp. and Nelnet, Inc. since each already holds sizable FFELP portfolios and service federal student loans for the
Portfolio acquisitions would be positive for Navient's credit profile as they would create additional earnings capacity and potentially extend the duration of the company's existing portfolio. However, the pricing and financing of any potential acquisitions would also be considered.
Wells Fargo and CIT represented two of the top 15 largest holders of FFELP loans as of
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.
Cash Flow Analysis of Navient Corporation (Updated Cash Flow Projections Post Separation)
Source: Fitch Ratings
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