The long-term rating on North Carolina Educational Facilities Finance Agency's variable-rate revenue bonds, issued for Wake Forest University, reflects the university's unsecured GO pledge supported by: A highly competitive demand for the university's academic programs; Stable enrollment levels and a diversified program base, including graduate and law schools; A sizable endowment and good liquidity; and A very manageable debt burden. While the medical school is not a separate legal entity, it is a financially autonomous operating division of the university that maintains and controls its revenues and assets apart from other divisions of the university. The university does not intend to pay debt service on outstanding bonds from the medical school revenues and assets, although it has the right to
