NEW YORK - Standard & Poor's Ratings Services said it has revised its outlook to stable from negative on debt issued by Western Illinois University Board of Trustees for Western Illinois University (WIU).
At the same time, Standard & Poor's Ratings Services has assigned its A long-term rating to $33.4 million of auxiliary facilities system revenue bonds, series 2012. In addition, it affirmed its A long-term rating and underlying rating (SPUR) on the university's certificates of participation and auxiliary facilities system (AFS) debt outstanding.
"The return to a stable outlook reflects our view that, although the state continues to delay disbursements, the university has demonstrated the ability to successfully manage its operations and cash flows and make timely debt service and vendor payments during the past two years," said Standard & Poor's credit analyst Jessica Lukas. "The outlook on rated universities had been revised to negative on Jan. 15, 2010 due to significantly delayed state operating appropriation payments," added Lukas.
Proceeds from the approximately $33.4 million auxiliary facilities system revenue bonds, series 2012, are expected to finance about $25.5 million of improvements to the university's housing and dining facilities and also to refund the series 2002 bonds outstanding. Post issuance, parity auxiliary facilities revenue bonds will total $80.5 million, which represents nearly 73% of total university debt.