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MOODY'S UPGRADES HOWARD UNIVERSITY BOND RATING TO 'A1' FROM 'A'

 MOODY'S UPGRADES HOWARD UNIVERSITY BOND RATING TO 'A1' FROM 'A'


Management Improvements Cited, Particularly a Dramatic Turnaround of
 Hospital Operations and Success in Obtaining Increasing Federal
 Appropriations for Infrastructure Renewal
 NEW YORK, Oct. 23 /PRNewswire/ -- Effective today, Moody's Investors Service upgraded the bond rating of Howard University to "A1" from "A." The review was completed in conjunction with the sale of $33,150,000 revenue and refunding bonds Series 1992 A & B, scheduled for Oct. 27.
 In raising the rating, Moody's noted that "the university's financial operations have improved significantly in the past two years, primarily because the university hospital underwent dramatic cost reduction as a part of the program initiated by new management to put the university on a sounder financial footing. Management has also refocused Howard's mission as a premier, comprehensive university serving primarily African-American and other minority students and has developed a set of long term goals and strategies that seek to increase both the quality and quantity of students who apply and enroll at Howard. Furthermore, the university has been successful in obtaining substantial, new federal appropriations over the past two years dedicated to remedial improvement of aging infrastructure." Howard is one of the few institutions of higher education in the county that receive federal funding for operations and has been successful in receiving increasing appropriations.
 Moody's went on to say that "although important progress has been made, the university still faces substantial challenges in its attempt to improve its academic and financial position. Keen competition from other universities targeting the same market, especially at the undergraduate level, is expected to continue, making the goal of increasing enrollment a particular challenge. The large capital requirements of the university to fund deferred maintenance needs also represents a significant hurdle which is expected to be financed with a variety of resources to be developed in the future, including increased giving, operating surpluses, new federal appropriations and debt. Moody's will continue to monitor the progress of the university".
 The rating action applies to $96.48 million of Howard University revenue bonds outstanding after the scheduled sale of $33.15 million on Oct. 4.
 -0- 10/23/92
 /CONTACT: Howard Cure, vice president, 212-553-7742, Dennis Farrell, vice president, 212-553-7780, or John Nelson, senior analyst, 212-553-4096, all of Moody's/ CO: Howard University ST: District of Columbia IN: SU: RTG


SM-KW -- NY050 -- 4217 10/23/92 13:57 EDT
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Date:Oct 23, 1992
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