Financial Statement Highlights

Debt

During 2006-07 the University's long-term debt increased to $708.5 million.
Principal payments of $89.8 million were made during the year.
The University issued approximately $235.9 million in revenue bonds through the Dormitory Authority of the State of New York (DASNY) for various capital construction projects and refinancing opportunities.

Ratings were reviewed by Moody's and Standard & Poor's in conjunction with the Series 2007 bond issue (winter 2007).
Moody's Investor Services assigned an "A1" rating with a "Positive" outlook. The revision of the outlook from stable to positive was primarily driven by Moody's expectation of expansion of fundraising success while maintaining positive operating performance, an improving student market position and financial resource growth.
Standard and Poor's confirmed the existing rating of "A+" with a "Stable" outlook.
Excerpts of most recent rating agency opinions:

Moody's Investors Service rating reflects:

The University's large diversified enrollment base with highly reputable graduate programs and continued healthy growth in net tuition per student;
Healthy financial resources which have exhibited continuous growth over the last few years as fundraising and investment returns fuel growth;
Long history of balanced operating performance for the University as a whole stemming from strong performance of the health system, growing research activities and a growing endowment; and
Potential for significant expansion in fundraising success as the relatively new senior leadership

Standard & Poor's rating reflects:

Good and improving demand for undergraduate programs and a comprehensive array of graduate and professional programs;
A history of good financial operations, generating increased operating surpluses in fiscal 2005 and 2006, along with good revenue diversity;
A sizable endowment of $1.49 billion at June 30, 2006; and
Historically manageable debt burden, with only $541 million of outstanding debt at June 30, 2006 and total pro forma debt of approximately $680 million.