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Presale: Utah Board Of Higher Education (Series 2020-1)

The preliminary 'AA+ (sf)' ratings assigned to Utah Board of Higher Education's (UBHE; f/k/a State Board of Regents Of The State of Utah) taxable student loan-backed notes series 2020-1 reflects: The transaction's expected initial senior parity of approximately 108.71%. Senior parity is defined as the percentage of total assets divided by the balance of the class A notes. In this transaction, senior parity is equal to total parity. Our weighted average seasoned-adjusted base-case default rate assumption of 17.0% for this pool, which is approximately 30% higher than it would have been absent the macroeconomic environment resulting from the COVID-19 pandemic. Most of the increase in defaults is expected to be reimbursed through the Department of Ed (ED) guarantee of defaults