The 'AA+' rating on the outstanding debt issued for Northwestern University reflects: Excellent financial operations, evidenced by consistent surpluses, broad revenue diversity, and manageable tuition discounting; Strong endowment growth and portfolio diversity, which have resulted in strengthening financial-resource ratios; and Continued enrollment stability and competitive student demand, despite downturns in the numbers of applicants for fall 2000 and fall 2001. The bonds are secured by Northwestern's GO pledge. The 'A-1+' rating reflects Northwestern's own liquidity and ability to meet puts in the event of failed remarketings. The stable outlook is predicated on Standard&Poor's expectations that Northwestern will continue to see strong student interest and strong demand trends and maintain strong financial operations and liquidity levels. Conservative budgeting and
