Moody's Investors Service said it has upgraded the ratings on 17 series of revenue bonds issued on behalf of the University System of Georgia to A1 from A2 and A3.
The bonds are supported by annually renewable rental agreement payments by the Board of Regents of the University System of Georgia. The upgrade concludes the review that began on October 15, 2014, when the A2 and A3 ratings were placed on review for upgrade.
The seven series moving to A1 from A3 and the related conduit issuers are:
- Tift County Development Authority, revenue bonds (First ABAC, LLC Project), Series 2003A
- Tift County Development Authority, student housing facilities revenue bonds (Second ABAC, LLC Project), Series 2006
- Savannah Economic Development Authority, revenue bonds (Armstrong Center, LLC Project), Series 2005A
- Newton County Industrial Development Authority, revenue bonds (GPC Foundation Real Estate Newton, LLC Academic Building-Newton Campus Project) Series 2005
- Barnesville-Lamar County Industrial Development Authority, student housing facilities revenue bonds (Gordon College Properties FoundationII, LLC Project), Series 2006
- Atkinson County-Coffee County Joint Development Authority, revenue bonds (SGC Real Estate Foundation, LLC), Series 2006
- Atkinson County-Coffee County Joint Development Authority, revenue bonds (SGC Real Estate Foundation II, LLC), Series 2009.
The 10 series moving to A1 from A2 and the related conduit issuers are:
- Savannah Economic Development Authority, revenue bonds (AASU Student Recreation Center LLC Project), Series 2005C
- Savannah Economic Development Authority, revenue bonds (AASU Compass Point, LLC Project), Series 2005D
- Savannah Economic Development Authority, revenue bonds (AASU Student Union , LLC Project), Series 2009
- Savannah Economic Development Authority, revenue bonds (Windward Commons, LLC Project), Series 2009
- Columbus Development Authority, revenue bonds (FCP I, LLC On-Campus Parking Deck Project), Series 2006 A
- Milledgeville-Baldwin County Dev. Auth., student fee and parking system lease revenue bonds, Series 2003A
- Development Authority of Richmond County, educational facilities revenue bonds (ASU Jaguar Student Center, LLC Project Located on the Campus of Augusta State University) Series 2005A
- Americus-Sumpter Payroll Development Authority, revenue bonds (GSW Foundation Housing, LLC Student Housing Project) Series 2005
- Americus-Sumpter Payroll Development Authority, revenue bonds (GSW Foundation Housing II, LLC Project), Series 2009
- Barnesville-Lamar County Industrial Development Authority, student housing facilities revenue bonds, Series 2004A
The rating outlooks are stable for Abraham Baldwin Agricultural College, Armstrong Atlantic State University, Columbus State University, Georgia College & State University, Georgia Perimeter College, Georgia Regents University, Georgia Southwestern State University, Gordon State College and South Georgia College.
The upgrade to A1 for the 17 series of lease revenue bonds acknowledges that the University System of Georgia (USG) governance and management have strengthened considerably.
As the dominant provider of public higher education in the Aaa-rated state of Georgia, USG has significant scale and scope. The system has developed effective new policies, procedures, and oversight that reduce the risks of decentralized operations and control.
The upgrade also acknowledges that USG has enhanced its oversight of the Public Private Ventures (PPV) program, increasing the links between the individually secured projects with the system's overall credit strength.
Actions by the system in response to recent credit stress at various system members provides further evidence that the system has the ability and willingness to provide extraordinary support to its members.
