Fitch Ratings announced on May 15, 2025, its expectation to rate Navient Corporation's upcoming long-term senior unsecured notes issuance 'BB-(EXP)'. The notes are anticipated to mature in 2032, and the expected rating is equalized with Navient's existing senior unsecured debt and Long-Term Issuer Default Rating (IDR) of 'BB-'.
The proceeds from this issuance are intended for general corporate purposes, including the repurchase of outstanding unsecured debt. Fitch does not expect this debt issuance to significantly impact Navient's leverage profile, as the primary use of proceeds is for debt repurchases.
Navient's leverage, calculated as debt to tangible equity excluding certain assets, was 9.0x at the end of Q1 2025, consistent with year-end 2024. This expected rating reflects Fitch's view of average recovery prospects under a stress scenario, given the availability of unencumbered assets.
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