The underlying rating on Philadelphia Authority for Industrial Development, Pa.'s bonds, issued for Girard Estate, reflects impressive liquidity and debt service coverage, offset by increasing leverage and historically adequate investment performance. Bonds are secured by the estate's GO, and will be used for capital projects on the 600 student Philadelphia-based campus of Girard College, which was established by the estate of Stephen Girard in 1831. Projects on the slate represent the first phase of a newly completed master plan. Estate assets in 1997 totaled $347 million, of which $270 million were cash and investments. Recent market value growth has pushed this up to about $288 million, which covers the estate's $25 million operating budget by 11 times and pro forma
