Both Fitch Ratings and Standard and Poor’s Financial Services (S&P) Global Ratings assigned an ‘AA Stable’ rating to the Trustees of Ivy Tech Community College’s series V student fee revenue bonds, and affirmed its ‘AA’ rating on Ivy Tech’s outstanding student fee revenue bonds, with a stable outlook.
Dr. Sue Ellspermann, President, Ivy Tech Community College said, “Our bond rating reflects the important work and strong fiscal stewardship the college continues to demonstrate. We are proud to provide Hoosiers with a valuable education in a manner that demonstrates strong stewardship to Indiana taxpayers through thoughtful and measured fiscal practices. Ivy Tech continues to be an integral part of the Indiana higher education system. Our consistently high fiscal ratings show our commitment to our students and the taxpayers of Indiana.”
Matt Hawkins, Senior Vice President and Chief Financial Officer, Ivy Tech Community College noted, “The bond rating of ‘AA Stable’ is the second highest of all Indiana public institutions of higher education, which indicates that Ivy Tech prudently manages state taxpayer dollars directed from the Commission for Higher Education, the Governor, and appropriated by the General Assembly. The rating is particularly noteworthy in a time when the rating agencies have downgraded the entire higher education sector from a stable to negative outlook.”
The series V bonds will fund capital projects for the Kokomo and Muncie campuses.
Fitch notes “Ivy Tech’s GAAP operating margins have been solidly positive over the past six years, impressive during a time with declining operating revenue and enrollment.”
According to the S&P Global Ratings report, “The rating reflects our view of Ivy Tech Community College’s 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. with good fiscal planning and policies in place.”