The 'A' rating on New Jersey Education Facilities Authority's bonds, issued for Montclair State University, reflects: The university's position in the state higher education funding hierarchy, Very good admissions flexibility, and Solid financial operations. Offsetting rating factors include limited financial flexibility, and the likelihood that state appropriations will not increase measurably in the next few years. The bonds are secured by the university's unlimited student fees. The 'BBB+' rating on Montclair's student housing bonds reflects the net dorm revenue pledge and good housing occupancy rates (100%). While dorm revenues have not always covered debt service, the dorm system has large fund balances and the university has followed the practice of subsidizing dorm revenues from these balances and from current operations.
