Standard&Poor's Ratings Services affirmed its 'AA+' long-term rating on the California Educational Facilities Authority's outstanding debt, issued on behalf of the University of Southern California (USC). In our opinion, positive rating factors include: The size and breadth of USC's undergraduate and graduate programs and its status as California's largest private university, with a headcount enrollment of 33,747 for fall 2008; Consistently strong operational performance, with a surplus of $55.3 million for fiscal 2008; A history of impressive fundraising; and An increasingly competitive demand profile, with improved first-year selectivity and higher student quality. We believe offsetting factors include low liquidity and financial resources for the rating category, with $2.6 billion in unrestricted resources for fiscal 2008 covering 1.2x operating
