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UNIVERSITY OF COLORADO RESEARCH BUILDING 1992 REVENUE BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 UNIVERSITY OF COLORADO RESEARCH BUILDING 1992 REVENUE BONDS 'A+'
 BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Sept. 21 /PRNewswire/ -- The Regents of the University of Colorado's $22.3 million research building revolving fund revenue bonds (Porter Biosciences Building Addition Phase I/MCDB Project), Series 1992 are rated 'A+' by Fitch. The credit trend is stable.
 The University of Colorado (UC) is the state's flagship public institution of higher education offering 277 degree programs to 44,663 students on four campuses in Boulder, Denver, and Colorado Springs. UC is also a comprehensive research university, which ranks among the top twenty higher education institutions in the country in receiving external research awards. Total university grants and contracts in fiscal 1992 amounted to over $233 million, a rise of 52 percent over research awards in 1988. In 1992, the university reported over 2,300 awards from a variety of federal, state, and local government agencies and private sources.
 Bond proceeds, along with $4.2 million of the university's cash, will be used to further expand UC's campus-based research activities. The 1992 bonds will be issued on a parity with a Series 1986, Series 1989 and Series 1990 issues, outstanding in the total amount of $32.1 million.
 The bonds are secured by a first lien on net income from all rents or charges derived from the use of university research buildings. Primary sources of pledged revenues include lease rental revenues from research facilities and indirect cost recovery revenues derived from research grants and contracts. In 1991, net income available to pay debt service amounted to over $40 million, providing a very strong 7.2 percent coverage of maximum annual debt service on all parity debt.
 In addition to the very strong coverage provided by pledged revenues, the rating is supported the credit strength of the university, the integral role played by research in UC's overall mission, and the magnitude and diversity of UC's research effort. UC's relatively conservative indirect overhead rates also heighten its competitive position in procuring additional research grants and contracts.
 Primary concerns include the intense competition for research grants and contracts as the federal budget deficit continues to limit resources available for research. There is also the potential for future reductions in federal reimbursement for indirect overhead charges as the government streamlines contracting procedures and steps up auditing efforts.
 -0- 9/21/92
 /CONTACT: Andy Matteis of Fitch, 212-908-0501/ CO: University of Colorado ST: Colorado IN: SU: RTG


AH -- NY050 -- 1667 09/21/92 12:19 EDT
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Date:Sep 21, 1992
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