The rating on New Jersey Educational Facility Authority's bonds, issued for Georgian Court College, reflects strong liquidity, positive operating performance, and financial flexibility. These factors are offset by enrollment fluctuations and a high acceptance rate. The outlook revision reflects increases in the college's enrollment following declines in 1996 through 1998, new marketing and fundraising efforts, and strong liquidity, which is projected to improve going forward as the college currently has a 0% endowment spending policy. Georgian Court's liquidity position is highlighted by a small, but growing, endowment of $26.4 million (fiscal year-end 1998), of which $18.6 million is unrestricted. The college's current spending policy does not allow for endowment spending, therefore future growth is expected from market investment gains and
