The rating on Ohio Higher Education Facilities Commission's bonds, issued for Denison University, reflects: * Impressive liquidity, strong coverage, and financial flexibility; * Tight budgetary control as evidenced by 44 years of operating surpluses; and * Low debt with $33.9 million in loans outstanding and no additional debt plans. Offsetting factors are the institution's dependence on student generated fees (75.3%), and weak matriculation rate. Denison's $234 million endowment has grown from $17 million in 1976, and provides the university with considerable financial flexibility as $151 million is classified as unrestricted and is available to support operations and debt. This growth is the result of sound management, conservative spending policy, and strong support and guidance from the board of trustees. The
