Standard & Poor’s raised its long-term rating and underlying rating on the Massachusetts Development Finance Agency’s bonds issued for Clark University to A-plus from A.
The rating agency also affirmed its AAA/A-1-plus rating on the university’s Series 2008 variable-rate demand revenue bonds, which the agency issued for the university.
“The upgrade reflects our view of Clark’s history of solid operating performance on a generally accepted accounting principles basis, strong financial resources relative to expenses and debt, and stable enrollment trends,” said credit analyst Nick Waugh.
“Balancing these strengths, in our opinion, are the university’s modest demand metrics, signifying intense competition in the New England market.”
Clark is in Worcester, about 30 miles west of Boston.
Standard & Poor’s cited Clark’s history of solid operating performance, endowment equal to $303 million relative to debt of $83.5 million as of June 30, 2012, strong financial resources for the rating category, stable enrollment trends, and a manageable maximum annual debt-service burden of 3.6% of fiscal 2012 operating expenses with no new debt plans.
