NEW YORK - Standard & Poor's Ratings Services said it raised its long-term rating to BBB from BBB-minus on California Community College Financing Authority's student housing revenue bonds, series 2003, issued for Feather River College Foundation. The outlook is stable.
"The raised rating reflects our view of a new management agreement between the foundation and Feather River College that, in our view, reflects strong connectivity between the college and the student housing project," said Standard & Poor's credit analyst Jonathan Volkmann. Prior to this agreement, the foundation both owned and operated the college's residence halls. Under the agreement, the college will manage, operate, and maintain the residence halls as well as supervise the collection of rent on behalf of the foundation.
Outstanding foundation debt totaled $3.1 million as of June 30, 2011, the majority of which consisted of $2.67 million in series 2003 student housing bonds.