Moody's Investors Service has downgraded Hamline University's rating to Baa2 from Baa1 due to its highly leveraged balance sheet. The move affects $56 million of debt, including this week's $26 million issued through the Minnesota Higher Education Facilities Authority.

Hamline also has significant exposure to variable-rate debt and supporting letters of credit with financial covenants and is dependent on receipt of gift revenues to repay rapid amortization of debt.

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