Standard & Poor's Ratings said it raised its long-term rating to AA-plus from AA and its dual ratings to AA-plus/A-1-plus from AA/A-1-plus on the University of Pittsburgh's existing debt.
At the same time, Standard & Poor's assigned its SP-1-plus rating to UP's $100 million series 2014 Pitt asset notes. The SP-1-plus rating is based on UP's history of solid market access and overall credit quality. The outlook, where applicable, is stable.
"The raised ratings reflect our view of UP's strong demand and enrollment measures, which have continually improved during the past decade," said Standard & Poor's credit analyst Jessica Wood. "Further supporting the rating is our view of UP's good revenue diversity, strong financial operating performance, and solid financial resource ratios for the rating category," Wood added.
Proceeds of the $100 million notes will be used to finance or reimburse the university for a variety of equipment and short-term assets at the various campuses. About $90 million in proceeds will be used to repay the series 2013 notes, with the balance of about $10 million funding new equipment. The notes are unsecured obligations of the university and, as such, are on parity with outstanding debt. The series 2014 notes are preliminarily scheduled to mature on July 27, 2015.
Founded in 1787, the university is a nonsectarian, coeducational, state-related research institution located in western Pennsylvania offering baccalaureate, graduate, and professional programs.
