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NEW YORK INSTITUTE OF TECHNOLOGY $92.9 MILLION TAXABLE BONDS 'B+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 22 /PRNewswire/ -- The New York Institute of Technology's (NYIT) approximately $92.9 million taxable bonds, 1993 series A are rated `B+' by Fitch. The credit trend is stable. Bond proceeds will be used to repay various bank indebtedness as part of a debt modification program entered into with NYIT's lenders, provide funds for working capital, and fund a debt service reserve fund. The 1993 series A bonds are expected to be sold on a negotiated basis by the First Boston Corp., Inc. in mid-December. Concurrent with the sale of the taxable bonds, the Town of Islip (N.Y.) Community Development Agency will sell approximately $42.4 million of parity tax-exempt bonds on NYIT's behalf. Fitch has not been asked to rate the tax-exempt bonds.
 The `B+' rating assigned to NYIT's bonds reflects a limited margin of safety and the need for the maintenance of reasonable operating results. NYIT suffers from a highly leveraged position, which is a result of the previous administration's investment policies, a significant decline in the undergraduate student population, which in part results from low retention rates, a high reliance on transfer students, and a competitive marketplace. The composition of NYIT's endowment in non-income producing illiquid real estate assets is also viewed negatively.
 As a result of a financial revitalization strategy implemented by new administrators and trustees, which included administrative and academic program cuts, salary deferrals, and a modification of the debt repayment terms with its lenders, NYIT has reported two consecutive years of surplus operations, which has provided a slight degree of financial stability. The success of the revitalization strategy results in part from NYIT's focus as a career-oriented college with identifiable programs that possess modest demand factors.
 NYIT operates one campus in Manhattan and two in Long Island -- Central Islip and Old Westbury. The school offers associates, bachelors, and masters degrees in 81 academic disciplines and operates the only osteopathic medical school in New York state. Currently, more than 10,000 students are enrolled at NYIT.
 -0- 11/22/93
 /CONTACT: Jerry Solomon, 212-908-0557, or Frederic J. Martucci, 212-908-0554, both of Fitch/


CO: New York Institute of Technology ST: New York IN: SU: RTG

CK -- NY093 -- 6995 11/22/93 17:10 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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