S&P rates North Carolina student loan bonds AAA

Standard & Poor's said it affirmed its AAA long-term ratings on North Carolina State Education Assistance Authority's $506.3 million of student loan revenue bonds, series 2005-A, and removed the bonds from negative watch.

The bonds had been on negative watch since Jan. 23 because Ambac Assurance Corp., which assures the notes, was placed on negative watch.

S&P said the current long-term AAA ratings no longer reflect the insurance policy, which is still in place.

The bonds consist of $159,855,000 of class A1 bonds, $159,855,000 of class A2 bonds, $75,945,000 of class A3 bonds, $75,945,000 of class A4 bonds, $17.35 million of A5 bonds and $17.35 million of A6 bonds.

The A1 and A5 bonds have a short-term rating of A-1+ based on liquidity provided by Royal Bank of Canada. The A2 and A6 bonds have a short-term rating of A-1 based on liquidity provided by Branch Banking & Trust Co. The A3 and A4 bonds have a short-term rating of A-1+ based on liquidity provided by Bank of America NA and Wachovia Bank NA, respectively.

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