Bangkok--29 Jul--Standard and Poor's
Standard and Poor's Ratings Services raised its long-term rating to 'AA' from 'A+' on the University of Washington's (UW) educational research properties lease revenue bonds series 1999A and B. Standard & Poor's also raised its long-term ratings to 'AA' from 'A+' on the university's parking system revenue bonds and the housing and dining system revenue bonds. Finally, Standard & Poor's affirmed its 'AA+' long-term and underlying ratings (SPUR) on the university's outstanding general revenue bonds, biomedical research I and II lease revenue bonds, and student facility fee revenue bonds. Standard & Poor's also affirmed its 'AA' long-term rating on the university's TSB lease revenue bonds and its 'A-1+' short-term rating on the university's commercial paper (CP) program.
"The raised ratings on the parking system revenue bonds and the housing and dining system revenue bonds reflect outstanding debt service coverage, strong operations of those systems, and the closed nature of those liens, with no additional debt possible under these structures," said Standard & Poor's credit analyst Jessica Matsumori. "The raised ratings on the educational research properties lease revenue bonds series 1999A and B reflect a renewed lease with the university which now extends through the life of the bonds. The rating of these bonds is now on par with the TSB lease revenue bonds."
University officials expect to issue additional general revenue bond debt before the end of the calendar year.
The stable outlook reflects our assumption that additional debt issuances will be met with a commensurate growth in financial resources or revenue. Furthermore, we anticipate continued enrollment management, successful fund raising, and financial strength ratios consistent with the rating category. We expect the university to sustain positive operating performance through a potentially challenging state funding environment and maintain stable operating performance at the medical center.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Higher Education, June 19, 2007
USPF Criteria: Commercial Paper, VRDO, And Self-Liquidity, July 3, 2007
USPF Criteria: Appropriation-Backed Obligations, June 13, 2007
Complete ratings information is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Jessica Matsumori, San Francisco (1) 415-371-5083
Carlotta R Mills, San Francisco (1) 415-371-5020