University of Dubuque, Iowa Iowa Higher Education Loan Authority; Private Coll/Univ - General Obligation

S&P Global Ratings affirmed its 'BBB' long-term rating on Iowa Higher Education Loan Authority's series 2021 private college facility revenue refunding bonds, issued on behalf of the University of Dubuque (UD). The outlook is stable. As of fiscal year-end, May 31, 2021, UD had approximately $56.9 million in pro forma long-term debt, which includes its $16 million series 2021 bonds issued subsequent to fiscal year-end that refunded the 2011 obligations, $28.1 million of series 2016 direct-purchase bonds, and about $1.1 million in notes payable and a line of credit. The university also has short-term debt, with $6.0 million of RANs outstanding as of fiscal year-end 2021. The RANs are issued annually for working cash, mature on May 19, 2022, and

...We assessed the UD's enterprise profile as adequate, characterized by enrollment pressure in recent years, reasonable selectivity and matriculation for the rating, and some geographic diversity within its enrollment base. We assessed UD's financial profile as adequate, with a history of deficit operating performance on a GAAP basis; very high student dependence, an aggressive debt structure, and continued reliance on RANs to bridge cash flow, but the previous weaknesses are partly offset by the continued strengthening of available resources. Combined, we believe these credit factors lead to an indicative standalone credit profile of '###' and a final rating '###'....

Full Report