OREANDA-NEWS. S&P Global Ratings lowered its rating on Massachusetts Development Finance Agency's series 2008-A and 2008-B variable-rate revenue bonds, issued for Babson College, to 'AA+/A-1+' from 'AAA/A-1+'.

The action reflects a lowering of the long-term component of the rating following our review based on our revised joint support criteria.

The long-term component of the rating is based on the joint support provided by the obligor, Babson College [A (SPUR)/Stable] and the higher of the ratings on the fronting letter of credit (LOC) provider, Citizens Bank N. A. (A-/A-2) and the confirming LOC provider, Federal Home Loan Bank of Boston (AA+/A-1+) at a low correlation level.

The long-term component of the rating reflects our expectation of the likelihood of bondholders receiving interest and principal payments when due if they do not exercise their put option. The short-term component reflects our opinion of the likelihood of bondholders receiving interest and principal payments if they exercise their put option.

Changes to the rating could result from, among other things, changes to the ratings on the support providers, obligor, the expiration or termination of the support agreements, or the amendments to the transactions' terms.