The rating on Colorado Educational and Cultural Facilities Authority, Colo.'s bonds, issued for Alexander Dawson Foundation, Nev., reflects: * Management's prudent investment philosophy which has increased unrestricted net assets 48% over the last five years to $160 million for fiscal 1998; * Considerable financial flexibility and liquidity with unrestricted resources representing 7 times (x) pro forma operating expenses and 3x pro forma debt; and * Good generation of cash flow with operating surpluses averaging 48% of total revenues since 1996. Offsetting factors include a relatively high debt burden with pro forma debt service representing 23% of operating expenses, project risk associated with the opening a new independent school in Las Vegas, and the foundation's governance structure. Although the foundation is
