Summary: University of Connecticut Connecticut; Appropriations; General Obligation; General Obligation Equivalent Security; Moral Obligation

S&P Global Ratings has assigned its 'AA-' long-term rating, and negative outlook, to the University of Connecticut's $300 million general obligation (GO) bonds, 2017 series A, and approximately $35 million 2017 refunding series A GO bonds. At the same time, S&P Global Ratings has affirmed its 'AA-' rating, with a negative outlook, on the university's $1.3 billion parity debt outstanding. We base the rating on the security provided by the state debt service commitment, which is defined by Public Act 95-230 (UCONN 2000), and the master indenture. The State of Connecticut (GO rating: AA-/Negative) is obligated to pay an annual amount sufficient to cover debt service on any state debt service commitment-authorized GO debt of the university. As part of

...S&P Global Ratings has assigned its '##-' long-term rating, and negative outlook, to the University of Connecticut's $300 million general obligation (GO) bonds, 2017 series A, and approximately $35 million 2017 refunding series A GO bonds. At the same time, S&P Global Ratings has affirmed its '##-' rating, with a negative outlook, on the university's $1.3 billion parity debt outstanding. We base the rating on the security provided by the state debt service commitment, which is defined by Public Act 95-230 (UCONN 2000), and the master indenture. The State of Connecticut (GO rating: ##-/Negative) is obligated to pay an annual amount sufficient to cover debt service on any state debt service commitment-authorized GO debt of the university. As part of the state's contract with bondholders, the funds necessary to meet the debt service commitment are paid by the state treasurer to the trustee from Connecticut's general fund and these payments are not subject to further legislative authorization...

Summary