S&P Global Ratings affirmed its 'A-' long-term rating on the Indiana Finance Authority 's educational facilities revenue bonds issued for Butler University , Ind. (BU, Butler, or the university). The outlook is stable. All the debt is a general obligation of the university and is fixed-rate. As of May 31, 2024, the university had about $169 million in debt outstanding, with about one-third, or $57 million, in direct-placement debt with commercial banks. The events of default are tied to events such as nonpayment of debt service and violation of covenants, including debt service coverage (DSC) above 1.1x. We do not believe the university is at risk of not meeting its DSC covenant and has sufficient liquidity, with about $150 million
