INDIANAPOLIS – Ivy Tech Community College has received an AA rating from Fitch Ratings, up from an AA- rating.
Fitch Ratings adjusted its rating upward from AA- to AA on The Trustees of Ivy Tech Community College of Indiana’s student fee bonds. The AA rating reflects Ivy Tech’s continued solid state support, very strong system-wide enrollment growth, conservative financial management practices and Ivy Tech’s large system with a network of 14 regions and 23 campuses.
It is premature to know the full impact of this adjustment. Previous rating upgrades resulted in estimated savings of 25 to 30 basis points per bond maturity. The combination of the recalibration and the use of the taxable Build America Bonds may increase the attractiveness of the College’s debt and result in a larger market for bonds, thus increasing demand and lowering interest costs further.
The increase in rating is attributed to Fitch’s recently announced recalibration of certain United States public finance credit ratings. Fitch notes that this recalibration is an adjustment to denote a comparable level of credit risk as ratings in other sectors. It is a step that Fitch has taken to ensure that the same rating scale is used internationally, thereby enabling market participants to compare Fitch’s perspective of credit risk across sectors and regions.
Ivy Tech Community College is the state’s largest public post-secondary institution and the nation’s largest singly-accredited statewide community college system with more than 150,000 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.