Standard & Poor’s and Fitch Ratings have reaffirmed their AA- rating with a stable outlook for Ivy Tech Community College.
The reaffirmed rating applies to the College’s Series M and N bonds sold on December 2 to finance new academic buildings on its Sellersburg, Elkhart, Warsaw, and Indianapolis campuses and to all previous bond issues.
Financial analysts estimate that the AA-rating saved Ivy Tech and the state of Indiana $2.1 million in interest costs over the life of the bond issue.
“We are very pleased to receive such positive ratings during these difficult economic times,” said Ivy Tech President Thomas J. Snyder. “This will translate into significant savings in interest costs over the life of the bond issue.”
Standard & Poor’s AA- rating reflects Ivy Tech’s solid state support, very strong system-wide enrollment growth, large system with a network of 14 regions and 23 campuses, seasoned management, strong financial performance, support of debt service costs from state fee replacement appropriations, and conservative financial management practices.
Offsetting credit factors noted by Standard & Poor’s are the low level of appropriations on a per full-time equivalent student basis and low financial resource levels.
The rating report issued by Fitch Ratings commented on Ivy Tech’s consistent operating and debt service support from the state, strong enrollment growth, and conservative financial management practices.
Offsetting credit risks identified by Fitch include a steadily growing but light liquidity cushion and historically limited fund raising.
About Ivy Tech Community College
Ivy Tech is the state’s largest public post-secondary institution and the nation’s largest singly-accredited statewide community college system with more than 130,000 students enrolled annually. Ivy Tech has 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 and a member of the North Central Association.