Moody's: High use of repayment plans, low prepayments and loan defaults will drive continued slowdown in FFELP ABS payment speeds in 2017
New York, December 13, 2016-- Slow payment speeds will continue to effect Federal Family Education Loan Program asset-backed securities in the year ahead, according to Moody's Investors Service in its 2017 outlook for the sector. Borrowers' continued use of debt repayment plans that help keep them current on their payments, along with better economic prospects for FFELP borrowers, who have lower rates of employment than young college graduates, will reduce defaults.
Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis. Moody's commitment and expertise contributes to transparent and integrated financial markets, protecting the integrity of credit. Our ratings and analysis track debt covering more than:
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76,000 structured finance obligations
Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Such independent credit ratings and research also contribute to efficiencies in fixed-income markets and other obligations, such as insurance policies and derivative transactions, by providing credible and independent assessments of credit risk.
Moody’s default studies validate our predictive ratings. Our published research and investor briefings draw thousands of attendees each year and keep investors current with the rationale underlying our credit opinions.
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