University Of Connecticut Connecticut; General Obligation; General Obligation Equivalent Security; Public Coll/Univ - Unlimited Student Fees

S&P Global Ratings lowered its long-term ratings on all outstanding University of Connecticut (UConn) general obligation (GO) bonds and special obligation-student fee revenue (SO-SFR) bonds to 'A+' from 'AA-'. At the same time, S&P Global Ratings assigned its 'A+' long-term rating to UConn's estimated $174.5 million series 2019A GO bonds and $64.9 million series 2019A refunding GO bonds. Total debt affected by this rating action, inclusive of the current debt issuance, minor loans, and capitalized leases, is $2.15 billion. The outlook is stable for all issues. The rating revision reflects our view that UConn's financial performance and available resources are constrained due to ongoing state budgetary pressure that limits improvement in financial operations and inhibits additional issuance of non-state supported

...+ Status as the flagship public university in Connecticut; + A favorable FTE enrollment trend with modest growth in each of the past five fall enrollment periods; + Longer term trend of increasing selectivity and improved graduation rates; + Significant state support for capital with almost all capital needs paid for directly by the state pursuant to the UConn 2000 Act while state operating appropriation declined in both fiscal 2017 and 2018 due to the state's budgetary pressures; + Continued progress in implementing a major initiative known as Next Generation Connecticut--a $1.55 billion investment begun in July 2015 and being made through fiscal year 2027 to promote growth in the STEM disciplines--however, operating appropriations from the state for fiscal years 2015 through 2019 were significantly reduced relative to what was originally planned due to the state's fiscal challenges; and + Somewhat high, but manageable, debt burden as most debt is state-supported while the debt burden...

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