The 'AA+' long-term rating on the University of Southern California's (USC) bonds reflects: The size and breadth of USC's undergraduate and graduate programs and its status as the largest California private university, based on a current enrollment of 30,682 students; Ample liquidity and financial flexibility from expendable resources representing over 7x debt and 1x operations; Solid fundraising, highlighted by the completed (December 2002) capital campaign that raised $2.72 billion (since 1993); and An increasingly competitive demand profile with improved first-year selectivity and higher student quality. Offsetting factors include the possibility of more debt within the next few years, as capital plans call for more construction and the likely slowdown in federal funding for research. The bonds are issued by the
