Standard & Poor's Ratings Services said it lowered its long-term rating two notches to AA-minus from AA-plus and to AA-minus/A-1-plus from AA-plus/A-1-plus on the California Institute of Technology's (Caltech) existing debt, some of which was issued by the California Educational Facilities Authority.
At the same time, Standard & Poor's assigned its AA-minus long-term rating to the institute's series 2015 bonds. The outlook, where applicable, is stable.
"The lowered rating reflects our view of Caltech's issuance of substantial additional debt, coupled with what we view as an aggressive debt profile," said Standard & Poor's credit analyst Jessica Matsumori. "Further stressing the rating is the institute's failure to improve its financial profile which has been weak for several years and lags the growth of peer institutions."
