Research Update: Gwynedd Mercy University, PA Revenue Bond Rating Affirmed At 'BBB'

S&P Global Ratings affirmed its 'BBB' long-term rating on Montgomery County Higher Education and Health Authority , Pa.'s series 2017, 2022 UU1, 2022 UU2, and 2023 VV1 revenue bonds issued for Gwynedd Mercy University (GMERCYU). The outlook is stable. As of June 30, 2024, the university's debt outstanding totaled $37.5 million, which includes long-term debt and a small number of finance leases. A lien on and security interest in pledged revenue secure all bonds outstanding; we consider this revenue stream a general obligation of the university. GMERCYU's debt is subject to a rate covenant of 1.1x, and the university remained well in compliance with the covenant in fiscal 2024 at 13.9x. We understand that management does not expect to issue

...As of June 30, 2024, the university's debt outstanding totaled $37.5 million, which includes long- term debt and a small number of finance leases. A lien on and security interest in pledged revenue secure all bonds outstanding; we consider this revenue stream a general obligation of the university. GMERCYU's debt is subject to a rate covenant of 1.1x, and the university remained well in compliance with the covenant in fiscal 2024 at 13.9x. We understand that management does not expect to issue additional debt during the outlook period....

Research Update