Standard&Poor's Ratings Services affirmed its 'BBB-' long-term rating on Iowa Higher Education Loan Authority's series 2011 private college facility revenue refunding bonds, issued on behalf of Dubuque University (UD). The outlook is stable. The rating is supported by UD's moderate enrollment growth, solid financial resource ratios, and historically balanced to positive operations on a cash basis; we note that operating performance was unusually strong in fiscal 2013 due to several large unrestricted gifts; fiscal 2014 operations reflect historical trends. The rating is currently constrained by the university's high debt burden, at approximately 6.6% of fiscal 2014 operating expenses, and consistently negative operating margins on a Generally Accepted Accounting Principle basis although margins are positive on a cash basis.
