The rating on New Jersey Higher Educational Facilities Authority's bonds, issued for Princeton University, reflects: * Stable enrollment trends and highly selective admissions; * A very prestigious academic reputation; * Considerable financial flexibility afforded by a diverse revenue stream and substantial liquidity; and * A growing but manageable debt burden. Princeton has a very diverse revenue base, with student driven tuition and auxiliary fee income accounting for only 30% of revenues. In addition, the market value of Princeton's endowment now exceeds $4 billion or almost $630,000 per student and provides considerable financial flexibility and support. Income derived from investments and grants each represents 25% of revenues, followed by gifts and pledges that make up 9.2%. As a result of conservative
