The rating on Southern Illinois University Board of Trustees' bonds, issued for Southern Illinois University (SIU), reflects SIU's: Strong position within Illinois' higher education system and class II research status; Diverse program offerings, including medical and law schools; Stable demand and enrollment; and A low debt burden. Offsetting factors include modest state appropriation growth and limited financial liquidity relative to operations. The bonds are on parity with $107 million outstanding debt and are secured by net auxiliary system revenues and fees. Because pledged revenues constitute a broad based, unlimited student fee pledge, the rating is equivalent to a general obligation of the university. Pledged revenues include net operating income from housing facilities, student fees for each campus union and each
