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Fitch Ratings affirms 'AA-' rating on $11.3 million Build NYC Resource Corporation bonds.

New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed the 'AA-' rating on the approximately $11.3 million Build NYC Resource Corporation, NY, tax-exempt revenue refunding bonds, series 2014 (Institute of International Education Project), issued on behalf of the Institute of International Education (IIE).

Fitch has assigned an Issuer Default Rating (IDR) of 'AA-' to IIE. The 'AA-' IDR and refunding bond rating reflect IIE's strong balance sheet resources relative to midrange revenue defensibility and stronger operating risk assessments. Financial resources provide significant flexibility to support the institution's financial operations and a negative net debt position throughout Fitch's forward look. Revenue defensibility is characterized by midrange demand and pricing ability, as IIE's endowment draw rate remains sustainable. Operating risk, as assessed through operating cost flexibility and resource management risk, is sound, as the bulk of spending is related to student and scholar placement, which is fully reimbursed, and indirect spending is for personnel and office functions with limited capital needs.

IIE's dominant market position as the largest administrator of international scholarship and exchange programs for nearly a century supports a midrange revenue defensibility assessment. The majority of revenues are tied to the cost of administering programs, allowing IIE to cover inflationary cost increases through sponsor funding. IIE's revenue base is highly concentrated in the small pool of international exchange sponsors and has varied considerably with the implementation and termination of major sponsored programs in recent years. Nonetheless, the demand for IIE's services is expected to remain stable at current levels.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Aug 30, 2018
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