Loyola at a Glance
Standard & Poor’s upgrades Loyola’s bond rating outlook
February 15, 2008
Standard & Poor’s, a worldwide leader in public sector credit services, recently upgraded Loyola University New Orleans’ rating outlook on Louisiana Public Facilities Authority’s revenue bonds from negative to stable. This decision reflects the university’s successful implementation of recovery and financial plans that essentially guided the university to reduce expenses and to reduce operating deficits after Hurricane Katrina. Standard & Poor’s also affirmed its “A+” standard long-term and underlying rating on the authority’s issued bonds for Loyola. According to Standard & Poor’s, the “A+” rating reflects:
· Strong leadership with solid planning and fiscal management
· Return to essentially break-even financial performance
· Solid liquidity
· Healthy endowment
· Short amortization of total debt with no additional debt plans for the future
Following Hurricane Katrina, Loyola experienced dramatic changes in enrollment along with challenging financial losses. The storm forced the university to close for the 2005 fall semester and caused approximately five million dollars in damages. In May 2006, Loyola’s Board of Trustees unanimously approved a restructuring plan that allowed Loyola to cut operating losses to essentially break even and improve net assets and the endowment. Standard and Poor’s new outlook for Loyola is given with the expectation that demand trends and enrollment levels will improve over the next two years. Currently, freshman applications for fall 2008 have increased 36 percent over same time last year.
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