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MICHIGAN STATE UNIVERSITY GENERAL REVENUE BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

MICHIGAN STATE UNIVERSITY GENERAL REVENUE BONDS RATED 'AA-' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Nov. 12 /PRNewswire/ -- The board of trustees of Michigan State University's $78 million general revenue bonds Series A are rated 'AA-' by Fitch. The credit trend is stable.
 Proceeds of the bonds will be used to advance refund the remaining $14.5 million of outstanding student fee revenue and refunding bonds, 1985 Series A, to currently refund the remaining $50 million student fee revenue bonds Series 1985 B and C, and to fund certain capital renovations and enhancements. The 1992 bonds are secured by a pledge of the university's general revenues, including student tuition, certain fees, gross income from auxiliary enterprises and other unrestricted income.
 Founded in 1855, Michigan State University (MSU) is a state- supported land grant college situated on over 5,000 acres in East Lansing. Through its 14 degree-granting colleges, MSU provides undergraduate, graduate and professional education in over 200 academic majors to over 32,000 full-time equivalent students. MSU is also a leading research institution, generating over $130 million in research grants and contracts in fiscal 1992.
 The rating is supported by MSU's prominence in the state's system of higher education, its broad scope of program offerings, strong operating performance, large unrestricted reserves, light debt burden, conservative financial management, and proven fund-raising ability. The university's 1992 unrestricted reserves amount to $154 million, equal to 1.9 times total pro forma debt. Pro forma maximum annual debt service is a minimal 1.1 percent of 1992 unrestricted current fund expenditures and mandatory transfers.
 Although MSU remains one of the two most heavily funded public universities in the state, the university has become increasingly reliant on tuition and fees as growth in state support fails to keep pace with inflation. The primary concern centers around the impact of anticipated future tuition and fee increases on undergraduate enrollment, which has been dropping as a result of sharp declines in the state's college-bound population and heightened competition from both in-state and out-of state colleges and universities. This concern is partially mitigated by management's proactive approach to managing undergraduate enrollment declines and projected growth in the state's pool of high school seniors after 1994.
 -0- 11/12/92
 /CONTACT: Andy Matteis of Fitch, 212-908-0501/ CO: Michigan State University ST: Michigan IN: SU: RTG


CK -- NY031 -- 0115 11/12/92 10:44 EST
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Publication:PR Newswire
Date:Nov 12, 1992
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