Statement issued Wednesday by Ivy Tech:
INDIANAPOLIS – Standard and Poor’s announced that it is assigning an AA- long-term rating with a stable outlook for The Trustees of Ivy Tech Community College of Indiana’s student fee bonds, series O, totaling $43.995 million. The rating by Standard and Poor’s follows Fitch Rating’s assignment of an AA rating and stable outlook for the same bond series.
The approximately $44 million series O bond proceeds will provide about $11.6 million of new money for projects on the Indianapolis and Muncie campuses, about $27.3 million to refund a portion of the series I and K student fee bonds and $5 million to refund all of the outstanding Lafayette interim bank loan.
The AA- long-term rating reflects Ivy Tech’s continued solid state support from Indiana, a very strong system-wide enrollment growth, a state-wide system with a network of 30 degree-granting campuses, a history of strong financial performance with operating surpluses on a full accrual basis, and support of debt service on about 93 percent pro forma debt from state fee-replacement appropriations.
Offsetting credit factors noted by Standard & Poor’s are the low level of appropriations on a full-time equivalent student basis, adequate financial resource levels for the rating category, and an above average pro forma debt service burden.
Ivy Tech Community College is the state’s largest public postsecondary institution and the nation’s largest singly accredited statewide community college system serving nearly 200,000 students annually. Ivy Tech has campuses throughout Indiana. It serves as the state’s engine of workforce development, offering affordable degree programs and training that are aligned with the needs of its community along with courses and programs that transfer to other colleges and universities in Indiana. It is accredited by the Higher Learning Commission and a member of the North Central Association.