INDIANAPOLIS – Ivy Tech Community College has received an AA- rating from Standard & Poor’s Ratings, as well as an AA- rating from Fitch Ratings.
Standard & Poor’s Ratings Services raised its rating to AA- from A+ on The Trustees of Ivy Tech Community College of Indiana’s parity debt. At the same time, Standard & Poor’s assigned its AA- rating to the series L student fee bonds. The AA- rating reflects Ivy Tech’s continued solid state support; very strong system-wide enrollment growth, with estimated full-time equivalent (FTE) of 49,445 students in the 07-08 academic year, and 118 percent increase from the 97-98 academic year; and Ivy Tech’s large system with a network of 14 regions and 23 campuses.
“The stable outlook reflects our expectation that financial operations will remain favorable, enrollment will remain stable, and liquidity will be adequate with respect to operations and debt,” Standard & Poor’s credit analyst Bobbi Gajwani said in a statement.
Standard & Poor’s states Ivy Tech boasts a seasoned management team, with a clear strategic vision for the future and reports strong financial performance with operating surpluses relative to operations of 5.4 percent, 5.8 percent and 3.2 percent in fiscals 2005, 2006 and 2007, respectively. The bonds’ relatively short average life with a final maturity of July 1, 2027 and support of debt service fee-replacement appropriations are added credit strengths.
“We are honored to receive such positive ratings from two prestigious organizations,” said Ivy Tech President Thomas J. Snyder. “Ivy Tech is truly a catalyst in helping the state compete on a national and global scale, and as the largest single-accreditation community college system in the U.S., Ivy Tech is earning a national reputation that will serve us well as we strive to become a leader in making education delivery even more responsive to the needs of those we serve.
Fitch Ratings assigned an AA- rating to the approximately $65,465,000 Trustees of Ivy Tech Community College student fee bonds, series L (the bonds). The bonds are scheduled to sell via negotiation during the week of August 18. At the same time, Fitch affirmed the AA- rating on approximately $171,975,000 of outstanding student fee revenue bonds. The student fee revenue bonds are secured by a first lien pledge on student fees, which include all academic fees (including tuition), levied to students attending the college.
Fitch Ratings states Ivy Tech’s outlook is stable. The AA- rating reflects the fee replacement nature of the bonds, which allows Ivy Tech to recover from the state (lease appropriation bonds rated ‘AA’ with a Stable Outlook by Fitch) student fees used to pay student fee revenue bonds debt service. Additional strengths, according to Fitch Ratings, include Ivy Tech’s steady enrollment growth, geographic diversity, solid operating performance and expenditure flexibility.
About Ivy Tech Community College
Ivy Tech is of the nation’s largest singly-accredited statewide community college system and the state’s second largest public post-secondary institution with more than 110,000 students enrolled annually. Ivy Tech has 23 campuses throughout Indiana. It serves as the state’s engine of workforce development, offering affordable degree programs and training that are aligned with the needs of its community along with courses and programs that transfer to other colleges and universities in Indiana. It is accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools.