Joined: August 28th, 2017, 8:28 pm

June 16th, 2018, 4:15 pm #61

edmc2416 wrote: What is LC's Debt rating?  
AA3 I believe.  A- s and p
Quote
Like
Share

Joined: September 29th, 2011, 1:25 am

June 28th, 2018, 12:31 am #62

Swarthmore keeps its AAA from S&P. The school has about $250 million in debt, plans a net gain of about $90 million more after a new issue, and has an endowment of just under $2 billion.
The new debt includes money for buildings and renovations.
The endowment supports about 39 percent of operating expenses. That’s high but they have the balance sheet to do it.
Quote
Like
Share

Joined: August 26th, 2017, 6:19 pm

June 29th, 2018, 12:01 am #63

What's the interest in credit rating on a sport centric board?
Quote
Like
Share

Joined: September 29th, 2011, 1:25 am

June 29th, 2018, 1:25 am #64

A college’s activities are dictated by its wealth and ability to borrow. All of its activities.
The ratings reports also sometimes include interesting information and hints of future actions by the schools.
Ratings are indeed flawed — I too remember Enron’s Raptors — but colleges have fewer moving parts than large for-profit corporations and the schools’ moves tend to be incremental.
Sometimes the links are more direct. Lousiville’s rating drew extra scrutiny after the Pitino debacles, and even Penn State’s reports took note and perhaps made an outlook change after the Jerry Sandusky disaster.  
I realize the category is a bit odd, but then this is a Lafayette board, and the thread has drawn interest.
“Whatever else!” as the discussion is called.
Quote
Like
Share

Joined: September 29th, 2011, 1:25 am

August 31st, 2018, 6:00 pm #65

S&P gives an A+ to refunding bonds. That and other outlooks noted are all stable.

A good report, it notes modest surpluses, revenue diversity. They expect Lafayette’s enrollment growth to continue.

On the con side, high MADS, irregular debt-service schedule and several bullet payments.

Solid selectivity and retention rates but weakening matriculation rates. 26 percent rate for the fall of 2017.

Total debt of $257 million. The new bonds will repay 2008 debt.
Quote
Like
Share