INDIANAPOLIS— Standard & Poor’s Rating Services has revised its rating outlook from stable to positive and affirmed its AA- long-term rating and underlying rating on The Trustees of Ivy Tech Community College’s outstanding bonds. At the same time, Standard & Poor’s assigned its AA- long-term rating to Ivy Tech’s $77.9 million series R student fees bonds, while Fitch Ratings assigned an AA rating with a stable outlook.
The series R bonds are expected via negotiated sale on or about October 29. Proceeds will be utilized to fully refund an interim bank loan that was used to refund a portion of series H and series L student fee bonds, fund the construction of certain capital projects, and pay associated costs of issuance.
In addition, Fitch affirms the rating on approximately $228.4 million of outstanding student fee revenue bonds.
“We are pleased with the rating reports,” President Thomas J. Snyder said. “We have high standards in all areas of our organization, and the ratings reflect the quality of our financial management and allocation of resources.”
Both Fitch and S&P noted success of the Ivy Tech Foundation. Fitch also listed other positive factors, such as state support and strong management and financial results, even as enrollment has dipped. Fitch’s report noted Ivy Tech’s steady operating performance, manageable enrollment shifts, good financial cushion, and stated that the financial leverage remains manageable.
S&P said the rating and positive outlook reflect Ivy Tech’s strong operating trends, highlighted by healthy surpluses recorded consistently for the past several years. They also noted generally stable enrollment levels, growing financial resources, and the history of strong state appropriations. In addition to those factors, S&P stated that the rating was determined by looking at the large statewide system, good fundraising history, and strong system-wide enrollment.
Ivy Tech Community College is the state’s largest public postsecondary institution and the nation’s largest singly accredited statewide community college system serving nearly 200,000 students 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.