The rating on Harvard University's sterling notes, offered on the Luxembourg exchange, is based on: * Significant financial resources, as evidenced by a $9.1 billion endowment (market value) at fiscal year-end 1996; * Strong management of operations, investments, and admissions; and * Excellent demand indicators supported by Harvard's worldwide recognition. The notes were launched in the Luxembourg market on Jan. 20, 1997 by Merrill Lynch Capital Services, with a Feb. 25, 1997 settlement date. The notes mature Feb. 25, 2000 and are an unsecured G.O. of the university. The notes will be swapped to floating-rate U.S. dollar debt if market conditions warrant. There is no currency rate risk in the offering, and an estimated 20 to 25 basis point savings
