The rating on the University of Kentucky's (UK) bonds reflects the university's position as one of two flagship institutions in the state (along with the University of Louisville), the statewide presence associated with the operation of 14 community colleges, good demand indicators, solid financial operations, sizable levels of unrestricted monies, and a manageable debt burden. Offsetting factors include a recent drop in enrollment at the community colleges as well as state appropriations that have decreased in recent years and only now are beginning the increase. The bonds are secured by a first lien on tuition and fees for students attending UK's main campus in Lexington. Bond proceeds will be used to finance a variety of campus maintenance and renovation projects.
