Standard&Poor's Ratings Services affirmed its 'AA/A-1+' long-term rating on North Carolina Capital Facilities Financing Agency's variable-rate educational facilities revenue bonds, series 2004A, issued for Wake Forest University. The outlook is stable. The rating reflects the university's unsecured general obligation pledge supported by: Positive financial performance on a full accrual basis, with consecutive operating surpluses of $7.7 million and $5.8 million for fiscals 2006 and 2007, respectively; A strong demand profile, with increases in full-time enrollment, solid acceptance and matriculation rates, and high student quality; A low current debt burden of 2.5%; and A well-diversified program base that includes graduate, medical, and law schools. Offsetting factors include: Low liquidity for the rating category, with fiscal 2007 unrestricted resources of
