OREANDA-NEWS. Fitch Ratings has upgraded the Long-Term ratings and affirmed the Short-Term ratings for the Minnesota Office of Higher Education's supplemental student loan program revenue bonds 2008 series A (taxable) and B (tax-exempt).

The ratings will expire on the earliest to occur of: (1) Oct. 1, 2017, which is the stated expiration date of the letter of credit, unless such date is extended; (2) any prior termination of the letter of credit; or (3) defeasance of the bonds.

KEY RATING DRIVERS

The ratings are based on the support provided by a direct-pay letter of credit (LOC) issued by U. S. Bank, N. A. (U. S. Bank), providing full support to the bonds. U. S. Bank is obligated to make payments of principal and interest on the bonds upon maturity, acceleration and redemption, as well as the purchase price for tendered bonds. The current Fitch rating for U. S. Bank, N. A. is 'AA'/'F1+' with a Stable Outlook.

RATING SENSITIVITIES

The ratings are exclusively tied to the long - and short-term ratings that Fitch maintains on the bank providing the LOC and will reflect all changes to the bank's ratings.

DUE DILIGENCE USAGE

No third-party due diligence was provided or reviewed in relation to this rating action.

Fitch has upgraded the following ratings:

Minnesota Office of Higher Education 2008

--2008A (taxable) bonds upgraded to 'AAsf'/'F1+sf' from 'AA-sf'/'F1+sf'; Outlook Stable;

--2008B (tax exempt) bonds upgraded to 'AAsf'/'F1+sf' from 'AA-sf'/'F1+sf'; Outlook Stable.