The rating on Connecticut Health&Education Facilities Authority's bonds, issued for Quinnipiac College, reflects Quinnipiac College's high tuition dependence and low levels of operating and debt liquidity. In addition, Quinnipiac exists in a very competitive market, as indicated by low matriculation rates and a growing financial aid burden. A 'BBB-' investment-grade rating is warranted, however, given Quinnipiac's strong, consistent annual surplus generation and continued enrollment growth. Quinnipiac's tuition dependence and lack of financial cushion precludes a higher rating. Quinnipiac depends on student-generated tuition and auxiliary fees for 94% of revenues, making the college vulnerable to sudden shifts in student headcount. While Quinnipiac has experienced enrollment growth, and operations have consistently generated surpluses, Quinnipiac's financial cushion remains extremely weak. The
