Standard&Poor's Ratings Services affirmed its 'AA' long-term rating and underlying rating (SPUR) on outstanding debt issued for the University of Southern California (USC) by various issuers. The outlook on all ratings is stable. The 'AA' rating reflects our view of the university's strong demand and student metrics, impressive fund raising capacity, and operating performance. These factors are partly offset by a greater appetite for debt since fiscal 2010, and the weak operating performance of three recently acquired hospitals. In our view, the endowment market value has increased and student selectivity has improved significantly since fiscal 2010, and during that time USC has both maintained its solid operating performance and its very strong fundraising ability. Limiting an upgrade at
