Inside Iowa State: Iowa State University

INSIDE IOWA STATE
February 9, 2001

Moody's upgrades ISU bond rating

Moody's Investors Services has upgraded its rating on $127 million of outstanding bond debt at Iowa State from A1 to Aa3, up one step. This is the highest rating Iowa State has ever received on its bond debt, according to vice president for business and finance Warren Madden.

The upgrade reflects the university's stable enrollment, manageable debt, strong financial resources following a successful capital campaign and steady operating performance, said Barry Fick of Springsted Inc., St. Paul, financial adviser to the Board of Regents, State of Iowa.

The $127 million includes bonds on academic buildings ($80 million), utility systems ($25 million), recreational facilities ($10 million), telecommunications facilities ($6 million), student health center ($4 million), and the athletic fieldhouse and auditorium ($3 million).

Moody's also assigned an A1 rating to $21.665 million in new dormitory revenue bonds. The regents approved the bond sale during their Jan. 17 meeting to pay for the first suite building (320 beds) in the proposed Union Drive neighborhood in the State Gym area.