NEW YORK – Fitch Ratings last week announced it assigned an “AA” rating to two bonds to be issued by the University of Massachusetts Building Authority on behalf of the University of Massachusetts.
The bonds were:
• $300 million project revenue bonds senior series 2014-1 (tax-exempt).
• $5 million project revenue bonds senior series 2014-2 (federally taxable).
The bonds are expected to sell via negotiated sale this week. Proceeds of the senior series 2014-1 and 2014-2 bonds will be used to finance capital projects and to pay capitalized interest.
The Rating Outlook is stable.
The rating reflected the university’s “historically positive operating performance, with growth in student-generated revenue and proactive expense-management efforts,” Fitch said. The school continues to exhibit “enrollment-related revenue growth supported by strong freshmen matriculation and affordability.” •
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