NEW YORK - Standard & Poor's Ratings Services said it has raised its long-term ratings and underlying ratings (SPURs) to AA from AA-minus on bonds issued for Colgate University, N.Y.

At the same time, Standard & Poor's assigned its AA long-term rating to the Madison County Capital Resource Corp.'s series 2012A revenue bonds issued for the university.

"The upgrade reflects Colgate's strong and growing financial resources, solid demand profile, successful fundraising efforts, and positive operating results," said Standard & Poor's credit analyst Nick Waugh. "The rating reflects our view of Colgate's strong financial resources and solid demand profile, and strong fundraising capacity," said Waugh.

Balancing these strengths is an historically mixed operating performance on a generally accepted accounting principle (GAAP) basis, but the university posted two consecutive GAAP surpluses through fiscal 2011.

The stable outlook reflects Standard & Poor's expectation that during the two-year outlook period, Colgate will likely maintain strong financial resources, sustain its demand profile, generate operating results (on a 12-month basis) that are similarly positive, and issue limited additional debt.

Standard & Poor's could consider a negative rating action during the outlook period if Colgate issues significant debt, demand characteristics weaken significantly, of if financial resources fail to keep pace with the category. Beyond the outlook period, Standard & Poor's could consider a positive rating action if the university significantly increases its endowment and improves its demand profile.

Located in Hamilton, N.Y., Colgate is a private undergraduate-focused liberal arts university.

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