CHICAGO--(BUSINESS WIRE)--Fitch Ratings plans to withdraw the ratings of SLM Corporation (Sallie Mae) on or about April 30, 2014; the day of the planned strategic separation of its loan management, servicing and asset recovery business, known as Navient Corporation (Navient), from its consumer banking business, known as SLM BankCo. After the separation, SLM BankCo will be renamed SLM Corporation.
Fitch will rate Navient going forward. SLM Corporation, which will primarily be an originator of private student loans, will no longer be rated by Fitch. Fitch will withdraw the ratings on the preferred instruments of SLM Corporation following the separation, as they will not be obligations of Navient.
Fitch currently rates SLM Corporation as follows:
--Long-term IDR 'BB+' ;
--Short-term IDR 'B';
--Senior unsecured debt 'BB+';
--Preferred stock 'BB-'.
Fitch reserves the right in its sole discretion to withdraw or maintain any rating at any time for any reason it deems sufficient. Fitch believes that investors benefit from increased rating coverage by Fitch and is providing notice to the market on the withdrawal of SLM Corporation ratings as a courtesy to investors.
Fitch's last rating action occurred on May 29, 2013. Fitch downgraded its long-term ratings on SLM Corporation to 'BB+' and short-term ratings to 'B'.
Additional information is available at 'www.fitchratings.com'.