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Posted: Fri Sep 23, 2016 3:25 pm

Pards RuleView user's profile






Joined: 02 Apr 2007
Posts: 1902


Location: Cherry Hill, NJ





bethlehempard wrote:
Can you imagine a recruit asking "Coach, whats the most recent bond rating of Lafayette?"


Sign him up! Now![/quote]

Eco & Biz major!!

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Posted: Thu May 18, 2017 8:03 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2137







Moody's assigned Aa3 to Lafayette's $138 million unsecured GO refunding and revenue bonds due for sale by May 31, maturity in 2048.
Outlook stable.

"Growth in financial resources, healthy liquidity."

"Moderately high and growing financial leverage and a highly competitive student market."

Operating revenue in FY16 was $166 million. The report says more donations would increase financial flexibility.

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Posted: Tue May 23, 2017 2:18 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2137







S&P cuts rating to A+ from AA- on 2013 A and B and 2009 bonds. Other corresponding changes were made. They cite the effects on the balance sheet of $70 million in bonds for the science center and refunding.
Total pro forma debt is $264 million.
"Aggressive debt structure with several bullet maturities and a high (MADS)" but also a large endowment and a plan to cover the bullet payments.
The Outlook is stable.

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Posted: Tue May 23, 2017 4:26 pm

LafalumView user's profile






Joined: 06 Mar 2007
Posts: 3916







bethlehempard wrote:
S&P cuts rating to A+ from AA- on 2013 A and B and 2009 bonds. Other corresponding changes were made. They cite the effects on the balance sheet of $70 million in bonds for the science center and refunding.
Total pro forma debt is $264 million.
"Aggressive debt structure with several bullet maturities and a high (MADS)" but also a large endowment and a plan to cover the bullet payments.
The Outlook is stable.


Our ability to raise additional debt without a cut in rating is 0 and none. We are now rated  below Lehigh.

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Posted: Tue Jun 06, 2017 1:10 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2137







Sarah Lawrence got a BBB, stable.
High draws on endowment (6 percent), deficits, high dependence on tuition with increasing tuition discount rates (watch that last one!)

Versus

Low debt burden, endowment growth, enrollment up after consecutive declines

The Lafayette report noted earlier is hardly dire and perhaps wasn't unexpected but it's the kind of item that an informed board has to ask hard questions about.

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Posted: Mon Jul 03, 2017 6:35 am

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2137







S&P cut its outlook on Fordham to negative from stable, affirmed the A rating.

"Decline in expendable resources and thinner operating margins" as the school makes big expenditures -- "investments" is the term used.

"Without solid growth, future resource ratios could become consistent with a lower rating."

So, the pressure is on, make that Lincoln Center campus pay.

Solid enrollment growth, but a "weak matriculation rate" in a highly competitive market, with a strong financial profile.

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Posted: Wed Aug 16, 2017 2:20 pm

bethlehempardView user's profile






Joined: 28 Sep 2011
Posts: 2137







Colgate was affirmed by Moody's at Aa3, one notch above Lafayette's A+ from S&P. Moody's cites Colgate's high leverage and reliance on student fees, offset by liquidity.

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Posted: Thu Aug 17, 2017 6:41 am

ed65View user's profile






Joined: 04 Sep 2013
Posts: 892


Location: New York City





As someone who uses bond ratings virtually every day in some of my consulting work, my reaction to the lowering of LC's bond rating is that it is no big deal although I agree that it merits some quality time explaining the situation to the BoT. The rating agencies' methodologies are opaque and arcane to say the least and their reputations have taken a well-deserved hit since their rather prominent role in rating mortgage securitization structures during the financial crisis. While the drop in the rating doesn't effect the interest LC pays on its current debt, it does bring up the fact that the school is building new buildings including the Science Center without all the $$ to pay for them (Kent Rockwell's gift was a good start). In fact, that brings up the point about how are they doing with the $400 Million Capital Campaign. I can't seem to get a straight answer on that.

Last edited by ed65 on Sat Aug 19, 2017 5:08 am; edited 1 time in total

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Posted: Thu Aug 17, 2017 8:57 am

MaroonerView user's profile






Joined: 20 Jan 2011
Posts: 155


Location: Allentown





One day, I'll become a real adult and learn what all of this means.

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