The rating upgrade on Colorado Springs, Colo.'s bonds, issued for Colorado College, reflects: * Strong growth in unrestricted resources, which have increased 39% since 1996 and equate to $133,884 per student; * Improved financial flexibility and liquidity with unrestricted resources representing 4 times (x) operations and 6.3x pro forma debt; * Favorable demand trends characterized by stable enrollment and increased selectivity; and * A manageable pro forma debt burden of 4.5%. Additional rating factors include improved fundraising and reduced reliance on tuition income, which now accounts for a smaller percentage of unrestricted revenues at 54%. Offsetting concerns include substantial competition for students and the institutions small enrollment, which increases its vulnerability to shifts in demand. Bond proceeds are being used
