News Release

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April 19, 2005

Positive Ratings For Boise State From Moody's and Standard and Poor's Support Bond Series

Two independent financial ratings services have given Boise State University high marks for its stable fiscal health.

In an April 15 report, Boise State has received an A+ rating from Standard & Poor’s Ratings Service and an A1 rating from Moody’s Investors Service for its $23.2 million series 2005A of general revenue and refunding bonds.

Bond proceeds will be used to construct additional improvements to the student services facility; construct an indoor athletic training facility; advance refund a portion of outstanding series 1996, 1998 and 2001 bonds; and fund a debt service reserve

“The positive ratings from two independent services reflect Boise State’s healthy financial position,” said Bob Kustra, Boise State University president. “The university is setting an aggressive course for the future as a metropolitan research institution, and the financial outlook from Standard & Poor’s and Moody’s underscores that we are on solid footing to grow and better serve our community.”

Moody’s A1 rating noted Boise State’s strengths as an urban university with healthy demand, consistently strong operating performance and adequate levels of financial reserves. “The stable outlook reflects the university’s steady student demand and ongoing positive operating performance, offset by potentially significant capital plans and uncertainty regarding the future of state funding,” wrote analysts for Moody’s.

In its rationale for an A+ rating, Standard & Poor’s report cited Boise State’s “position in the state’s funding hierarchy for higher education; history of balanced financial operations, with acceptable levels of liquidity; continued growth in student demand, with good acceptance and matriculation rates; limited competition in the region; and wide array of program offerings.”

Boise State is the largest university in Idaho and has set a state enrollment record in each of the past eight fall semesters with more than 18,000 students. Despite a 14.4 percent decrease in state support per student over the past three years, Boise State has maintained an average operating margin of 4.6 percent. As of June 30, 2004, unrestricted net assets were $59 million, or 30 percent of operating expenses and 40 percent of pro forma debt for the university.

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Contact: Stacy Pearson, Vice President for Finance and Administration, (208) 426-1200

Media Contact: Frank Zang, University Communications, (208) 426-5391, frankzang@boisestate.edu

The Office of Communications and Marketing - Boise State University
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email newservices@boisestate.edu

Last reviewed on Thursday, December 22, 2005