The rating outlook on SLM Corporation (SLM), which is popularly known as Sallie Mae, has recently been upgraded to Stable from Negative by Standard & Poor's (S&P) Ratings Services. The upgrade reflects the rating agency?s expectation of an improvement in the quality of its private loans portfolio over the next two years with a recovery in the economy. The long-term credit rating of BBB- for Sallie Mae has also been affirmed by S&P.
By the end of next year, the rating agency expects a 20% or more decline in loan charge-offs. Substantial reduction in charge-offs in its "nontraditional" loans, higher-rate loans for borrowers with impair credit records, is also predicted by the agency. The company had stopped originating such loans in January 2008. Additionally, stringent standards for credit extension coupled with rigid policies for collecting loan repayments from borrowers should also improve the loan portfolio.
In January, Sallie Mae reported
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Eva Green Lauren Conrad Arielle Kebbel Jessica Paré Leelee Sobieski
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