Ivy Tech Community College receives AA bond rating and stable outlook from Fitch, stable outlook and AA bond rating from S&P

INDIANAPOLIS – Fitch Ratings has assigned an ‘AA’ rating to the Trustees of Ivy Tech Community College’s series U student bond fees, and affirmed its ‘AA’ rating on Ivy Tech’s outstanding student fee revenue bonds, with a stable outlook.

The series U bonds are expected to sell via negotiated sale, and proceeds will advance refund Ivy Tech’s series L student fee bonds and pay associated costs of issuance.

Fitch notes “stable credit characteristics, sound market position, healthy financial profile and moderate debt burden” as key rating drivers. It was also noted that “Ivy Tech consistency generates positive operating margins, averaging 6 percent between fiscal years 2012 and 2016, including 5.8 percent in the most recent year.”

In addition, Standard and Poor’s Financial Services (S&P) Global Ratings assigned its ‘AA’ long-term rating to the Trustees of Ivy Tech Community College’s series U student fee bonds, and affirmed its ‘AA’ long-term and underlying ratings (SPUR) on Ivy Tech’s outstanding student fee bonds, with a stable outlook for all bonds.

According to the S&P Global Ratings report, “The rating reflects our view of Ivy Tech Community College’s (ITCC) credit strengths including its healthy full-accrual operating margins, increased financial resource ratios, and robust state appropriations. It also reflects our view of ITCC’s enterprise profile strengths, including its position as the largest single-accreditation community college system in the U.S. and strong management team with good fiscal planning and policies in place.”

About Ivy Tech Community College

Ivy Tech Community College is the state’s largest public postsecondary institution and the nation’s largest singly accredited statewide community college system. 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.

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