Loyola receives top bond ratings from national credit agency
Loyola press release - May 2, 2011
Standard & Poor’s Rating Services has given Loyola University New Orleans its stamp of approval in terms of financial strength. S&P affirmed its 'A+' long-term rating and underlying rating (SPUR) on series 2010 and 2006 revenue bonds issued by the Louisiana Public Facilities Authority on behalf of Loyola University.
According to S&P, the high ratings were a result of the agency's assessment of the university’s strong leadership team; solid financial planning, management and resources; improved student enrollment; and healthy endowment.
The stable outlook reflects the agency's expectation that Loyola will successfully return to balanced operating margins on a full-accrual basis, continue to build the size of entering classes to meet target enrollment levels, maintain adequate levels of financial resources for the rating category, and maintain a manageable debt burden including an expected new debt issuance.
University President Kevin Wm. Wildes, S.J., Ph.D., said these improved financial ratings mean continued growth and stability for the university and are a direct result of strategic financial and operational planning since Katrina.
“The university was faced with huge losses following Katrina. With thoughtful and conservative planning in finances and operations, aggressive efforts to increase enrollment and a strong spirit of renewal among the university community, we are firmly positioned for growth as we head into our second century of existence,” said Wildes.
Bond ratings are a factor in determining the cost of capital for the university when borrowing funds. Having a high rating means considerable savings in the cost of capital when borrowing. Loyola secured approval in February 2010 from the Louisiana State Bond Commission to issue $35 million in revenue bonds for capital improvements at the university, including a renovation to Thomas Hall and a two-floor addition to West Road parking garage. The bonds issued in 2006, currently outstanding in the amount of $38.5 million, were secured to refinance earlier bond issues.
For more information, please contact Meredith Hartley, director of Loyola’s Office of Public Affairs and External Relations, at 504-722-6078 or firstname.lastname@example.org.
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