The ratings on Connecticut Health and Educational Facilities Authority's bonds, issued for Quinnipiac College, reflect the college's: High tuition dependence; Low, but strengthening, liquidity; and Highly competitive market, as indicated by a growing financial aid burden and low matriculation rate. Offsetting positive factors include strong, consistent annual surplus generation and continued enrollment growth. Quinnipiac depends on student-generated tuition and auxiliary fees for 93% of revenues, making the college vulnerable to sudden shifts in student headcount. Historically, operations produce strong surpluses, with fiscal 1999 generating a $18.9 million surplus, or net operating income of 17.2%. The financial cushion has typically been weak due to spending on plant facilities and programs rather than balance accumulation. Fiscal 1999, however, marked a turnaround in
