The rating downgrade on New Jersey Educational Facilities Authority's bonds, issued for St. Peter's College, reflects: * High debt at 8.6% of expenditures as a result of this debt issuance, with future additional debt likely; * A low level of unrestricted resources not commensurate with a 'BBB+' rating; and * Limited resources and a lack of a fund-raising track record to accomplish the college's ambitious capital plan, which incorporates growing enrollments and the construction of new dormitories. Other credit factors include: * A modestly improved demand profile, although demand flexibility remains limited, * Stable student quality, and * Consistently balanced operating results. As part of the college's multiyear strategic plan, the bonds include $12 million of new money, primarily for
