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NEW YORK – Moody's Investors Service said it is considering downgrading long-term ratings for the nation's biggest student lender, Sallie Mae, citing earnings and cash-flow generation at the company.
Sallie Mae, formally called SLM Corp., faces significant uncertainties over the political and consumer lending environment for student lenders, Moody's also said.
"These issues could challenge the company's liquidity and funding position as it nears large unsecured debt maturities in 2010 and particularly in 2011," Moody's said.
The long-term Ba1, or non-investment grade, rating would be affected by a downgrade.
Shares of Reston, Va.-based Sallie Mae rose 3 cents to $8.90 in afternoon trading.
