OREANDA-NEWS. Fitch Ratings affirms the long- and short-term ratings of the Minnesota Office of Higher Education's supplemental student loan program revenue bonds, 2012 series A (taxable) and series B (tax-exempt). A full rating list is provided at the end of this release.

KEY RATING DRIVERS

The ratings are based on the support provided by a direct-pay letter of credit (LOC) issued by Royal Bank of Canada providing full support to the bonds. Royal Bank of Canada 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. Fitch's current rating for Royal Bank of Canada is 'AA/F1+'/Outlook Stable.

The rating will expire on the earliest to occur of: (1) Oct. 15, 2015 - which is the stated expiration date of the LOC - unless such date is extended; (2) conversion to an alternate mode; (3) any prior termination of the LOC; or (4) defeasance of the bonds.

RATING SENSITIVITIES

The rating of the bonds is 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

Fitch was not provided due diligence information from any third parties relating to the Minnesota Office of Higher Education 2012 Series A & B Ratings.

Fitch has affirmed the following:

Minnesota Office of Higher Education 2012
--2012A (taxable) notes at 'AA/F1+'; Outlook Stable;
--2012B (tax-exempt) notes at 'AA/F1+'; Outlook Stable.