Standard&Poor's Ratings Services assigned its 'AA' long-term rating to the California Educational Facilities Authority's series 2012A revenue bonds, issued for the University of Southern California (USC). Additionally, Standard&Poor's affirmed its 'AA' rating and underlying rating on USC's outstanding debt. The outlook on all ratings is stable. The 'AA' rating is reflective of the university's strong demand and student metrics, impressive fund raising capacity, and operating performance, which are counter-balanced by an increased appetite for debt in recent years and its progress to date on improving the performance of two recently-acquired hospitals from Tenet. These hospitals are not currently profitable, nor are expected to be for a few more years. The university more than doubled its debt
