The rating on New Jersey Educational Facilities Authority's bonds, issued for Montclair State University, reflects the net dorm revenue pledge, good housing occupancy rates approaching 100%, and the strong general creditworthiness of the university ('A' GO rating, stable outlook). Although pledged dorm revenues typically do not fully cover debt service, the university transfers surpluses from dorms that have no debt, generating total coverage over 1 times (x). In 1997, coverage from pledged dorms was 0.92x; but total coverage, including all dorms, was 1.16x. Additionally, the dorm system has a sizable fund balance of $2 million. The dormitory system also has $23 million of bond insured debt outstanding, which also has the net dormitory revenue pledge. The pledged dorm system has
