Standard&Poor's Rating Services assigned its 'A-' issuer credit rating (ICR) to DePaul University, Ill. The 'A-' rating reflects the university's: Strong financial performance, with operating margins ranging from 7%-12% of adjusted operating expenses for the past four years; Good demand, with a 20% annual increase in freshman applications to more than 12,400 for fall 2007; and Growing liquidity, with unrestricted resources of $355 million representing 81% of adjusted operating expenses and 131% of pro forma debt (which includes an additional $50 million of debt added to the balance sheet in fiscal 2008). Offsetting factors include: Strong dependence on student-generated tuition and auxiliary fees, which comprise 90% of adjusted operating revenues; and Weak history of fundraising, though the university
