Fitch Affirms 'BBB+' for La Salle University, PA.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch affirms the 'BBB+' rating on $79.6 million of outstanding Pennsylvania Higher Educational Facilities Authority bonds issued on behalf of La Salle La Salle, city (1990 pop. 9,717), La Salle co., N Ill., on the Illinois River; settled 1830, inc. 1852. It forms a tricity unit with Peru and Oglesby. Corn, wheat, and soybeans are grown, and cattle and hogs are raised. University, series 1993, 1994, 1996, 1998 and 2003. The Rating Outlook is Stable. The rating and Outlook are based on La Salle's increasing enrollment, improved operating performance and moderate liquidity. Headcount enrollment for fall 2005 was 6,194 reflecting a 14.2% increase since fall 2002. Freshmen applications increased by 13.7% over the same time period. For fall 2005, La Salle accepted 74% of the freshmen applicants and enrolled 24% of the accepted students. Enrollment continued to grow as rates of tuition increases ranged from 6.3% to 7.7% over the last three years. The increased enrollment and tuition revenue contributed to the improved operating performance for fiscal years 2003-2005 with operating margins ranging from 1.9% to 2.7%. For fiscal years 2001 and 2002, La Salle had negative operating margins. La Salle's liquidity improved slightly over the last three years with available funds, defined as cash and investments that are not restricted, grew to $52 million. Available funds would cover 54%, or approximately six months, of fiscal 2005 unrestricted expenses. Credit concerns include the high debt burden, a competitive regional higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. market and a high level of tuition discounting. Maximum annual debt service of $7 million would consume 7.1% of fiscal 2005 unrestricted revenues, which is above Fitch's 'BBB' private university median of 4.9%. The university has no near term plans for additional debt issuance. With debt repayment being derived primarily from the university's primary funding source, tuition and fees, maintaining current enrollment levels are critical. In the Philadelphia area, La Salle competes with several private universities for students, primarily Saint Joseph's Saint Joseph's may refer to:
La Salle University was founded in 1863 by the Christian Brothers. The main campus is located north of Center City Philadelphia on 100-acres. The university also opened a campus in Newtown (Bucks County, PA) in 1997. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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