Debt and Credit Ratings

Debt

During 2003-04 the University's long-term debt decreased to $504.2 million.
Principal payments of $30 million were made during the year.
The University issued approximately $165 million in bonds through the Dormitory Authority of the State of New York (DASNY): $86 million to refinance existing debt and $79 million in new money for capital projects.

Ratings were reviewed by Moody's and Standard & Poor's in conjunction with Series 2003 and 2004 bond issues.
Existing ratings were confirmed: A1 Moody's, A+ Standard & Poor's (summer 2004).
Excerpts of most recent (2004) rating agency opinions:

Moody's Investors Service rating reflects:

The University's diversified enrollment, with highly reputable graduate programs complementing the University's improved undergraduate demand profile;
Strong performance by the health system, although heavy exposure to health care remains a risk;
Healthy financial resources and modest additional near term debt plans; and
Good operating performance, driven by revenue growth in the healthcare and research enterprises.

Standard & Poor's rating reflects:

History of balanced financial operations, generating operating surpluses of $31 million or 2% of budget in both 2002 and 2001, $15 million or 1% in 2003, and the expectation that 2004 will also end with a surplus;
Successful fundraising efforts and continued growth in sponsored research;
Relatively stable demand trends, with good selectivity coupled with strong student quality and good student retention; and
Large endowment, exceeding $152,000 per student.