Standard & Poor's Ratings Services has lowered its rating to AA-minus from AA on the $50 million series 2010 and $119.3 million series 2007 revenue bonds issued by the New York Dormitory Authority for Vassar College.

"The downgrade reflects our view of continued pressure on Vassar's credit profile from the unsustainable and increasing supplemental endowment draw levels coupled with several years of full-accrual operating deficits and plans for additional debt within the next 12 months," said Standard & Poor's credit analyst Charlene Butterfield. "Though the college has balanced its recent budgets on a cash basis, excluding depreciation expense, it is due to significant supplemental endowment draws that continued through fiscal 2012," said Butterfield.

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