NEW YORK - Standard & Poor's Ratings Services said it revised its outlook to stable from negative on Arizona State University's (ASU) outstanding debt.
At the same time, Standard & Poor's assigned its AA long-term rating to the Arizona Board of Regents' approximately $218.4 million series 2012 system revenue bonds, issued on behalf of ASU.
Finally, Standard & Poor's affirmed its AA long-term and underlying rating (SPUR) on the university's outstanding system revenue bonds, and its AA-minus long-term rating on the university's certificates of participation (COPs) and appropriation-backed debt, issued by various entities.
"The revised outlook reflects our view of the university's strengthened balance sheet and financial resource ratios -- although they are still low for the rating category -- during the past two years, its moderated future debt issuance plans, and its achievement of consistently positive operating surpluses during a constrained state funding environment," said Standard & Poor's credit analyst Jessica Lukas. "Further supporting the rating is our view of the university's growing demand and enrollment," Lukas added.
Management indicates proceeds from the series 2012 revenue bonds will be used for multiple capital projects, including dining facilities and student services facilities at the West Campus and Polytechnic Campus, a new business school facility, acquisition of two student housing facilities currently financed on a component unit basis, and installation of certain information technology infrastructure. The remaining proceeds will be used to refund in advance certain outstanding bonds of the university.
