Standard & Poors last week upgraded the Wisconsin Medical College to A-plus from A in conjunction with the schools upcoming sale of $135 million of fixed-and variable-rate bonds its first new issue in seven years.
The school issues its debt through the Wisconsin Health and Educational Facilities Authority.
Analysts attributed the upgrade to the medical schools healthy financial operations, including a much-improved balance sheet due to the receipt of $303 million of additional restricted endowment in fiscal 2004, to good liquidity and a low debt burden.
The upgrade follows the recent assignment by Moodys Investors Service of a first-time rating of A1. The college will have a total of $178 million of debt once the current issue is sold. Goldman, Sachs & Co. is the lead underwriter.
About $31 million of proceeds will refund 1993 debt and the remainder will finance construction of a major new research facility and other projects. The new research building should help bolster the colleges ability to lure research funding although it already holds a solid spot as the second-largest medical research institution in the state following the University of Wisconsin. The college enjoys a strong reputation in Wisconsin where it is one of only two medical schools.
