Archive Posts for 2009

Items of interest for December 10, 2009:

FAME Wednesday Webinar

State of Maine Grant Payment Processing

Outreach Update

The Finance Authority of Maine (FAME) was recognized as a regional winner at The Bond Buyer’s 2009 Deal of the Year Awards ceremony held December 1 in New York City.

FAME was selected as a Northeast regional finalist through a competitive process as part of the newspaper’s eighth annual Deal of the Year Award.  All regional finalists were considered for the publication’s overall Deal of the Year Award, as well, which FAME did not win.

The awards recognize some of the nation’s most innovative municipal bond issuers.  The 2009 awards considered deals that closed between October 1, 2008 and September 30, 2009.  Over sixty nominations were submitted.  Two finalists were selected from each region covered by the paper:  a large issuer and, in FAME’s case, a small issuer of bonds.

 Award entries were evaluated by The Bond Buyer’s editors and bureau chiefs, who considered innovation, efforts by government issuers to accomplish their goals in challenging times, the ability for a deal to serve as a model for other financing, and the public purpose for which a transaction’s proceeds were used.

FAME was recognized for its role issuing $14,495,000 in taxable waste motor-oil revenue bonds to help finance important environmental clean-up at a variety of Maine waste-oil disposal sites.  The Maine Legislature imposed premiums on certain motor vehicle oil transactions to fund the costs of bond payments. 

From approximately 1969 to 1980, a waste oil recycling business improperly disposed of oil at various Maine sites, contaminating soil and groundwater.  The federal and state governments have negotiated response cost recovery and liability settlements with a number of parties.  The bonds will be used to pay a portion of the remediation costs.

“FAME’s financing through the waste oil clean-up program helped our company meet its obligations under the law and the unexpected costs that resulted from waste oil disposal,” stated John B. Darling, Chairman of the Board of Darling’s automotive group in Brewer.  “The recent issuance of bonds will help clean the environment and assist Maine businesses in paying the costs of remediation.”

“We are honored to accept this award on behalf of the State of Maine,” stated Beth Bordowitz, FAME’s Chief Executive Officer.  “FAME was pleased to collaborate with many statewide partners to address environmental damage and financially assist numerous, well-intentioned Maine towns, school districts, and businesses left responsible for the clean-up.  The award recognizes innovative bond financing in challenging economic times, and we are pleased to have played a role in that.”

The Bond Buyer is SourceMedia’s 118-year-old daily newspaper covering the municipal finance industry.  For more information on the paper, please visit www.bondbuyer.com

The Finance Authority of Maine (FAME) currently is displaying the work of J. Donna Asmussen, a professional Maine artist specializing in watercolor, with additional focus in printmaking. 

FAME Customer Service Associate Becky MacKenzie, who helped organize the display, stated:  “FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others.” 

A painter and printmaker, Ms. Asmussen works mainly from her home studio in Smithfield.  Before becoming involved in the arts, she worked in education as a teacher, school administrator, and consultant for many years in Rhode Island and Maine.  She studied oil painting briefly in Rhode Island while a public school teacher and currently studies watercolor with Stan Keirstead in Western Maine and printmaking with Scott Reed at Colby College.    

Ms. Asmussen’s background in education has led her to continue her connections with local schools and libraries, loaning them original works to encourage children to experiment with art.  A variety of her works can be viewed on her website at www.artjourneyer.com. 

Artwork currently displayed at FAME includes original watercolors and prints inspired by the ever-changing seasonal beauty of both inland and coastal Maine; and a series of small pen and ink images, washed with watercolor, capturing local landmarks in the Belgrade lakes area.  Prints and cards for purchase are available in the FAME lobby, as well.

The public may view the exhibition Monday through Friday from 8:00 AM to 5:00 PM.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off 95.  The exhibit is open to the public through December 31, 2009, with a reception planned for December 3rd from 5-7PM.

To learn more about FAME Art Exhibits and openings, or if you are an artist who would like to have your work considered for exhibition, contact FAME at 1-800-228-3734.

The FAME Board held its annual meeting Tuesday, November 10, 2009, at Portland’s Holiday Inn by the Bay.  The Board elected new officers and approved financial assistance for a number of Maine companies. 

Elected as officers for 2010 are:  Glenn Lamarr of Fort Kent, Chair; Susan Snowden of Scarborough, Vice Chair; and Cheri Walker of Portland, Treasurer.

The Board also approved several proposals to assist Maine businesses during these challenging economic times.

The Board approved commercial loan insurance on two loans from Farm Credit of Maine totaling $2.15 million for LMJ Enterprises, LLC.  The insurance will help the company, which produces pine shavings for large animal bedding, construct a manufacturing facility in Lincoln.  LMJ plans to create ten jobs. 

Also approved was an economic recovery loan of $500,000 to Montreal, Maine & Atlantic Railway, Ltd.  The loan will help fund working capital and approximately 200 miles of track maintenance in Maine.  Until the track resurfacing occurs, train speeds will remain lowered and delays in freight transportation will continue.  A total of 210 jobs will be retained as a result of FAME’s action.

“We are pleased to assist these Maine companies in their efforts to succeed in a challenging economic environment and maintain good-paying jobs,” stated FAME Board Chair Glenn Lamarr.

The Board also approved a new round of investments totaling $985,000 as part of the Maine Economic Development Venture Capital Revolving Investment Fund Program (VRIP).   Created by the Legislature in 1995, VRIP allows the state to invest as an equal partner in eligible private venture capital funds to support emerging and early-growth businesses in Maine.  It utilizes experienced, professional fund managers to increase the probability of successful investments in Maine companies.  FAME approved applications for investments in the Borealis Fund III, LP and Coastal Ventures III, LP.  Since 2000, FAME has invested $3 million in five separate venture capital funds.  These funds have, in turn, collectively invested almost $13 million in various Maine companies. 

FAME Chief Executive Officer Beth Bordowitz stated:  “FAME is pleased to facilitate further participation in the VRIP program using returns from successful past investments.  FAME is committed to supporting emerging and early-stage Maine businesses, especially in this challenging economy.”

Also on November 10, FAME held its annual dinner and awards program, “Showcase Maine.”  Approximately 250 leaders in government, business and higher education attended the event.  In addition to hosting a reception showcasing various Maine business and educational organizations, FAME presented a number of awards to Maine business and higher education leaders.  This year’s recipients included:  Western Mountains Charitable Foundation, also known as Maine Huts & Trails (Business at Work for Maine Award), a nonprofit entity working to build and operate a year-round, 180-mile recreational corridor in Western Maine; Maine College Transitions Program (Education at Work for Maine Award), a comprehensive program of adult education study, career planning and coaching to encourage enrollment in postsecondary institutions; John Burns, fund manager of the Small Enterprise Growth Fund (Dirigo Business Award), a state-sponsored venture capital fund, who has assisted numerous Maine start up companies in obtaining capital; Carolyn Dorrity, former head of the Acadia Health Education Coalition (Dirigo Education Award), who introduced health careers to Maine students and worked tirelessly to create and support opportunities for clinical mentorships; and Camden National Bank (Financial Institution of the Year Award), which has  worked closely with FAME to provide numerous insured loans to Maine’s small businesses, including the fishing and tourism industries.

Dr. Sandy Baum, a senior policy analyst at the College Board, delivered a keynote speech entitled “Investing in Higher Education:  The Future of Our Economy.”  Dr. Baum, an expert on student aid policy and higher education finance, underscored the value of investing in higher education in a challenging economy.

Items of interest for the November 10, 2009 edition:

Get A Life Expanded

Outreach Update

Future Faces of Maine

FAME is excited to announce the creation of a high school version of its popular “Get a Life” game.  This interactive financial literacy game was originally created primarily for middle school students and has now been expanded to teach high school students the basics of money management. 

Through this game, students learn about potential career options, college aspirations and financial education; including budgeting, wants vs. needs and the consequences of making choices.  Most importantly, “Get a Life” encourages conversation among students regarding career goals and aspirations, while emphasizing the importance of making the right choices in order to have as many options in life as possible. 

Both versions have also been updated to reflect current median salary in Maine, as well as important additions to the career selections.  The new version has already been introduced to the high school audience and has proven to be a great success.  For more information, please contact Angela Dostie.

The Finance Authority of Maine (FAME) has announced that its annual meeting and awards event, Showcase Maine, will be held Tuesday, November 10, 2009, from 4:30 p.m. to 7:45 p.m. at Portland’s Holiday Inn By the Bay.

Showcase Maine is a celebration of the many successful partnerships FAME has forged over the past twenty-six years with Maine’s business and higher education communities. 

The evening will feature a reception, including displays by Maine businesses and educational organizations that partner with FAME; a dinner and awards presentation; and a keynote speech entitled “Investing in Higher Education:  The Future of Our Economy” by Sandy Baum, Ph.D, a senior policy analyst with the College Board.  Dr. Baum is the co-author of the College Board publications Trends in Student Aid, Trends in College Pricing, and Education Pays:  The Benefits of Higher Education for Individuals and Society.  She has written extensively on issues relating to college access, college pricing, student aid policy, student debt, affordability, and other aspects of higher education finance.

“We look forward to celebrating FAME’s many partnerships that will help Maine endure this challenging economic time and come out stronger,” stated Beth Bordowitz, FAME’s CEO.  “Crucial to FAME’s success in providing innovative financial solutions to Maine’s business and higher education communities are the relationships we’ve forged over the years.  Together we make business and education work for Maine’s economy.”

In addition to the reception showcasing various Maine business and educational organizations, the evening will feature the presentation of a number of awards by FAME.  This year’s award recipients include:  Western Maine Charitable Foundation, also known as Maine Huts & Trails (Business at Work for Maine Award), a nonprofit entity working to build and operate a year-round, 180-mile recreational corridor in Western Maine; Maine College Transitions Program (Education at Work for Maine Award), a comprehensive program of adult education study, career planning and coaching to encourage enrollment in postsecondary institutions; John Burns, fund manager of the Small Enterprise Growth Fund (Dirigo Award), a state-sponsored venture capital fund; Carolyn Dorrity, former head of the Acadia Health Education Coalition (Dirigo Award), who introduced health careers to countless Maine students and worked tirelessly to create and support opportunities for clinical mentorships; and Camden National Bank (Financial Institution of the Year Award), which has worked closely with FAME to provide numerous insured loan products to Maine’s small businesses.

Items of interest for the October 13 edition:

FAME's Annual Showcase Maine

EPIC Online System

Outreach Update

FAME's annual meeting, Showcase Maine, will be held on November 10, 2009 at the Holiday Inn By the Bay.  We are pleased to have Dr. Sandy Baum as the keynote speaker this year.  Her topic will be Investing in Higher Education: The Future of Our Economy.  Dr. Baum is a Senior Policy Analyst at the College Board and former Professor of Economics at Skidmore College.  She has written extensively on issues relating to college access, college pricing, student aid policy, student debt, affordability, and other aspects of higher education finance.

Dr. Baum is the co-author of Trends in Student Aid, Trends in College Pricing, and Education Pays: The Benefits of Higher Education for Individuals and Society for the College Board. Other recent work includes studies of setting benchmarks for manageable student debt levels and of tuition discounting in public and private colleges and universities. She co-chaired the Rethinking Student Aid study group, which recently issued comprehensive proposals for reform of the federal student aid system.

More details and registration will be available soon.

Items of interest for the September 29 edition:

New FAME Web Site

2009 Financial Aid Tool Kit available

Online database transitions to EPIC

D.C. Update

GOAL$: Financial aid nights begin 

FAME is pleased to introduce our newly re-designed Web site.  This grant-funded initiative represents our commitment to providing Maine citizens with easy-to-find information and resources.  This is only the first stage of our re-design, however, as we also will be including new functionality and features during the coming months.  Please share comments or suggestions at info@famemaine.com.

Governor John E. Baldacci issued a proclamation today naming September 2009 as College Savings Month in Maine.  The Governor spoke at a brief ceremony marking the 10th anniversary of Maine’s college savings plan, the NextGen College Investing Plan.®  Launched a decade ago, NextGen is the fifth-largest college savings plan in the nation, with more than $4.4 billion in assets.

“September is back to school and it is also time to take action on college savings,” Baldacci said.  “With NextGen firmly established and ever-evolving over the past 10 years, our citizens have the best opportunity and a firm foundation to help pay for a college education.  Being able to save for college tuition now can be a big help later in life.”

The Governor presented the proclamation to Beth Bordowitz, CEO of the Finance Authority of Maine, during a ceremony at the State House.  Also in attendance was Tammy and Christopher Creswell, NextGen account owners who live in St. Albans.  The Creswell’s two children for whom the college savings accounts were opened also attended the ceremony.

NextGen was created by the Maine Legislature in 1999 as a qualified tuition program, and is designed to help families prepare for higher education expenses.

“NextGen is a successful program that has become even more vital as college tuitions rise,” said Bordowitz.  “FAME is proud to play a role in helping so many Maine students reach their college dreams.”

NextGen is a Section 529 plan administered by FAME, with Merrill Lynch as the program manager.  NextGen's earnings are state and federal income-tax-deferred, and are tax-free so long as the withdrawals are used for qualified higher education expenses.

Governor Baldacci noted that among other NextGen benefits to residents, the Harold Alfond College Challenge enables Mainers to easily augment their savings for their children’s education.  This first-in-the-nation program provides a $500 grant for every Maine newborn to start a NextGen savings account for future college expenses.  There are no income limits to participate in the program.

Other NextGen benefits for Mainers currently include:
• A one-time $200 initial matching grant to help Maine families with adjusted gross incomes of $75,000 or less open their NextGen account;
• Up to $250 per year, per beneficiary, tax deduction for Maine taxpayers who make contributions to a NextGen plan;
• Waiver of the annual account maintenance fee;
• Direct deposit available for Maine income tax refunds;
• For Maine workers, Life-long Learning Accounts that provide employer-matched individual NextGen accounts to help employees upgrade their skills and education while meeting the demands of businesses for a skilled workforce; and
• Annual need based scholarships for qualifying Maine students.

The Finance Authority of Maine (FAME) announced that recent improvements to its Regional Economic Development Revolving Loan Program (REDLP) will take effect September 14, 2009.  The modifications result from enactment last spring by the Legislature and Governor John E. Baldacci of Public Law 2009, Chapter 131, An Act to Modify the Regional Economic Development Revolving Loan Program.

REDLP, created by the Legislature in 1993, is designed to make loans through Maine’s regional economic development agencies for the purpose of creating or retaining jobs.  FAME makes disbursements to regional economic development agencies and the agencies, in turn, make loans to eligible borrowers.

“FAME is pleased to offer an enhanced REDLP to better meet the needs of Maine’s regional economic development agencies and the businesses they serve,” stated FAME Chief Executive Officer Beth Bordowitz.  “FAME is committed to partnering with these local agencies and supporting Maine’s small businesses in this challenging economy.”

The new law has two components.  The first is geared toward meeting the credit needs of businesses in this challenging economy.  Through June 30, 2010, participating regional agencies will be able to make loans to almost any eligible Maine business, regardless of size or sector, with certain limited exceptions.  Commencing July 1, 2010, the program will revert back to its original purposes, with modifications to update the program.

The changes include:  increased maximum fund disbursements to regional economic development agencies; amended financing terms and conditions; expanded eligibility for projects, especially Maine’s targeted cluster industries such as composites, energy, and marine and biotechnology; and expanded business eligibility for program funds. 

The program enhancements, which won broad support in the Legislature, result from the combined input of various Maine regional economic development agencies.

“These sensible, no-cost changes to REDLP are ways by which FAME, in partnership with regional economic development agencies, is addressing the capital needs of Maine’s small businesses during these challenging economic times,” stated Will Armitage, Executive Director of Biddeford-Saco Area Economic Development Corporation, which participates in the program.

From 1996 through 2007, REDLP provided 535 loans totaling $27 million.  These loans in turn leveraged an additional $218.1 million in investments and created and retained a total of 9,104 Maine jobs.  Interested parties should contact their regional agency for information and applications regarding REDLP.

The Finance Authority of Maine (FAME) is requesting additional applications by private venture capital funds as it prepares to deploy up to $985,000 in additional funds through its successful Maine Economic Development Venture Capital Revolving Investment Program (VRIP).

VRIP, created by the Legislature in 1995, allows the state to invest as an equal partner in eligible private venture capital funds to support emerging and early-growth businesses in Maine.  It utilizes experienced, professional fund managers to increase the probability of successful investments in Maine companies.  The American Heritage® Dictionary of the English Language (Fourth Edition) defines venture capital as “money made available for investment in innovative enterprises or research, especially in high technology, in which both the risk of loss and the potential for profit may be considerable.”

"FAME is pleased to invite further participation in the VRIP program using returns from its past investments,” stated FAME Chief Executive Officer Beth Bordowitz.  “FAME is committed to supporting emerging and early-stage Maine businesses, especially in this challenging economy.”

Since 2000, FAME has invested $3 million in five separate funds:  The Borealis Fund, L.P.; Brook Venture Fund II; CEI Community Ventures, LLC; Coastal Ventures II, LLC; and Masthead Venture Partners Capital, L.P.  These five funds have collectively invested almost 13 million in various Maine companies. 

The $980,000 in additional, planned FAME investments results from successful returns on the program’s previous investments.

FAME will be accepting applications to VRIP through noon on September 18, 2009, with the expectation of making investment decisions in November.  Interested parties may request an application by calling FAME at (800) 228-3734 or by visiting the VRIP section of FAME’s Web site at www.famemaine.com.

The Board of Directors of the Finance Authority of Maine (FAME) recently approved commercial loan insurance on a Skowhegan Savings Bank loan to Saddleback, Inc. and Saddleback Land and Timber Corporation (Saddleback) for the operating needs and expansion of the Western Maine ski resort facility.  FAME also has adopted a new refinancing program for FAME-approved lenders that is designed to help lenders and borrowers succeed in current economic conditions.

FAME has agreed to provide 90% insurance on a $3 million loan by Skowhegan Savings Bank to Saddleback, which plans to expand its current operations and create a four-season destination facility in the Rangeley lakes area.

“We are pleased to assist Saddleback as it continues to improve operations at this renowned Maine mountain,” stated FAME Board Vice Chair Glenn Lamarr.  “FAME is very supportive of increased economic development in the Rangeley area and the retention and creation of an estimated 200 full and part-time jobs at the resort.”

“We are grateful for FAME’s assistance and excited about Saddleback’s plans for the future,” stated Warren Cook, CEO and General Manager of Saddleback.  “FAME’s actions will help us maintain and create good Maine jobs while expanding operations.  Saddleback has a storied Maine history and now, thanks in part to FAME, a bright future, as well.”  

Saddleback Mountain offers a 2,000-foot vertical drop and is one of seven New England mountains with a top-lift elevation of over 4,000 feet.  Saddleback has made a number of improvements over the last several years, including construction of a new base lodge and new lifts; expanded snowmaking; a new grooming fleet; and increased four-season destination programs for weddings and functions.  To learn more about Saddleback, please visit www.saddlebackmaine.com.

The FAME Board also has approved modifications to FAME’s current loan insurance policy that will allow FAME-approved lenders to obtain limited insurance coverage on previously uninsured exposures through a modification or refinance.  Under the new program, up to a maximum of 40% of FAME loan insurance may be provided.  Potential borrowers will need to demonstrate that some form of public benefit will result from this participation, such as the retention or creation of jobs and the impact the industry has on jobs and other businesses in the region.  This program is similar to one previously offered by FAME to assist Maine lobstermen overcome challenging economic and federal regulatory conditions.   

“By adjusting our loan insurance policy to allow the refinancing of certain existing debt, FAME is demonstrating its support for Maine’s economy and the important relationships local businesses maintain with their local lenders,” stated Beth Bordowitz, FAME’s Chief Executive Officer.  “We also hope that this program will assist traditional Maine industries, such as logging, during an especially stubborn recession.”

FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine citizens pursue business and educational opportunities.  To learn more about FAME, please visit www.famemaine.com. 

The Finance Authority of Maine (FAME) recently expanded its financial literacy program to include Money Management Counseling.  

FAME’s Money Management Counseling is an interactive online tool that teaches students the importance of managing their money, an important step toward taking control of their lives.  FAME created this session to complement its existing Additional Student Loan Debt Counseling.  Both programs are powered by Mapping Your Future.  All Maine colleges and universities are eligible to enroll and offer this service free of charge to enrolled students; several schools already are participating. 

Through the success of Additional Student Loan Debt Counseling, FAME experienced the value of counseling powered by Mapping Your Future in educating students.  The interactive format allows students to better retain and understand the information presented. 

"We are pleased to offer this valuable service to Maine students and families.  Money management skills are important to students, especially during these challenging economic times,” stated Beth Bordowitz, FAME’s Chief Executive Officer.

"We know it’s important to educate students before they make important financial decisions,” said Cathy Mueller, executive director of Mapping Your Future. “This innovative session created by FAME provides students with information in an easy-to-understand format in a method that is effective for students.”

Mapping Your Future also provides step-by-step instructions on career, college planning, and financial aid.  In addition, the site offers online student loan counseling, money management information and tools, and online customer service for schools and their students.

For more information about counseling powered by Mapping Your Future, contact CariAnne Behr at carianne@mappingyourfuture.org or (573) 634-8641.

The Finance Authority of Maine (FAME) is displaying the works of Maine artists Kay Seefeldt and Mary Beth Morrison.  Kay and Mary Beth both hail from New Sharon. 

In support of this exhibition, FAME Acting Chief Executive Officer Beth Bordowitz stated:  “Artists enrich and bring beauty to our society and communities.  FAME is proud to recognize and support Maine artists.”

Kay is a watercolor artist who paints “wet-on-wet” to create mystical, poetic landscapes and spontaneous abstract pieces.  She studies with Stan Keirstead of Farmington and has taken classes with several well-known national and international artists.  She has taught basic watercolor for several years for area adult education programs.  Kay enjoys experimenting with traditional encaustic (wax) painting and other media.   

Mary Beth paints in watercolor and acrylics and owns Braided Streams Studio in New Sharon.  She studied with Stan Keirstead of Farmington and Marni Lawson.  She currently studies with Janalee Welch in pastels.  She is active in Upcountry Artists and teaches workshops in creativity, gives occasional painting lessons, and participates in Wild Women of Art retreats.  She has won a variety of awards and honors.  Her work can be seen at www.upcountryartists.com. 

FAME hopes to bring visibility to the achievements of all Maine artists by providing an opportunity to exhibit their artwork and to inspire passion about art in others.  The public may view the exhibition Monday through Friday from 8:00 a.m. to 5:00 p.m.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off I-95.  The exhibit is open to the public until the beginning of July.      

To learn more about FAME art exhibits and openings, or, if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.

The Finance Authority of Maine (FAME) is displaying the works of Maine artist Lea Peterson, who hails from Georgetown.  In support of this exhibition, FAME Acting CEO Beth Bordowitz stated:  “FAME is proud to recognize and support the important contributions that Maine artists make to our communities.”

Ms. Peterson is a pastel artist whose paintings are primarily seascapes and landscapes that convey the many moods of the Maine coast.  She enjoys painting the rocky shores, tides, marshes, people, villages, wildlife and flora of Maine.  Peterson has been drawing and painting since she was eight years old, painting prolifically in oils and watercolors.  She has studied with several instructors and at the University of Maryland, where she minored in Studio Art, including oils, sculpture and printmaking. 

Following a career as an award-winning writer and communication director, Peterson recently returned to painting, this time with pastels.  She is a member of the Maine Art Gallery, American Society of Marine Artists, Pastel Painters of Maine, Kennebec Art Club, and Merrymeeting Art Association.  She also is a partner in the Old Post Office Gallery in Georgetown.  Her work has appeared in juried exhibitions at the Chocolate Church, Maine Art and Freeport Square galleries.  Peterson may be reached at (207) 371-2015 or LLPmaine@hughes.net.   

FAME hopes to bring visibility to the achievements of all Maine artists by providing opportunities to exhibit their artwork and to inspire passion about art in others.  To learn more about FAME art exhibits and openings, or if you are an artist who would like to have your work considered for exhibition, please contact FAME at 1-800-228-3734.  The FAME building is located at 5 Community Drive, Augusta, Exit 112 off 95.  The exhibit is open to the public until April 1, 2009.      

The Finance Authority of Maine (FAME) was informed recently that Moody's Investors Service (Moody’s) has downgraded the ratings of FAME’s education loan revenue bonds.  The ratings are a result of market conditions and the ratings of FAME’s bond insurer, Ambac Assurance Corporation (Ambac).  The ratings downgrade is not an indication of FAME’s financial standing, however. 

According to a press release issued by Moody’s on January 30, 2009, the ratings downgrade of the education loan revenue bonds was based on the ratings downgrade of Ambac, which unconditionally and irrevocably guarantees timely payment of interest and the ultimate payment of principal on the maturity date of the bonds.

FAME decided to insure its education loan revenue bonds through Ambac in 2007 largely due to Ambac’s AAA rating at the time.

Moody’s announced recently that several other student loan bonds issued by other entities have had their bond ratings downgraded.

Beth Bordowitz, Acting CEO of FAME, stated:  “The student loan market has been broken for a full year now.  FAME has been trying to refinance its bonds but it’s nearly impossible in this market.  Due to market conditions and Ambac’s financial position, the costs of the bonds to FAME are much higher than anticipated.  We will continue to make every effort to refinance the bonds to reduce costs.”

Bordowitz emphasized that Moody’s new credit rating will have no effect on Maine students.  "FAME is proud to have remained in the student loan market when so many others have exited.  Due in large part to FAME’s presence in the market, to our knowledge no Maine student has been unable to secure a federally-guaranteed student loan.”

For more information on Moody’s action, please visit www.moodys.com.