Moody’s changes SLM outlook

Moody's Investors Service said it affirmed the ratings and assessments of SLM Corp. and its bank subsidiary, Sallie Mae Bank.

SLM's ratings include long-term issuer and senior unsecured ratings of Ba1 and a non-cumulative preferred stock rating of Ba3(hyb).

Sallie Mae Bank's ratings include a baseline credit assessment and adjusted baseline credit assessment of baa3, a long-term issuer rating of Ba1, long- and short-term bank deposit ratings of Baa1/Prime-2, long- and short-term counterparty risk ratings of Baa3/Prime-3, and long- and short-term counterparty risk assessments of Baa2(cr)/Prime-2(cr).

The outlooks on SLM's long-term issuer and senior unsecured ratings and Sallie Mae Bank's long-term issuer and long-term bank deposit ratings were changed to stable from positive.

“The change in outlooks on SLM and Sallie Mae Bank's ratings to stable from positive follows the recent weakening in the company's asset quality, which is weighing on its profitability, and declining capitalization,” the agency said in a news release.

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