Standard & Poor's raised its long-term rating and underlying rating to AA-minus from BBB-minus on New York City Industrial Development Agency's Series 2007 civic facility refunding revenue bonds, issued on behalf of Polytechnic Institute of New York University.
S&P based its move New York University's acquisition of Polytechnic, located in downtown Brooklyn. It also removed the rating from credit watch with positive implications. The outlook is stable.
As of Jan. 1, Polytechnic became NYU's school of engineering. As of the same date, NYU assumed all Polytechnic assets, liabilities and obligations, including the 2007 bonds. Therefore, the bonds are a general obligation of NYU and are on parity with NYU's other bond ratings. Our July 3, 2013, analysis of NYU assumed that Polytechnic would merge with the university.
"We believe that NYU is able to absorb Polytechnic's debt at the current rating level," said Standard & Poor's credit analyst Carolyn McLean.
An S&P analysis of NYU last July assumed the merger would materialize.
