News Release

January 8, 2007


Moody's, Standard & Poor's Rating Services Gives Boise State University Highest Marks

Two independent financial ratings services have given Boise State University their highest marks for its stable fiscal health. Boise State received an A1 rating from Moody’s Investors Service and an A+ rating from Standard & Poor’s Ratings Services for its $52.9 million series 2007A of general revenue and refunding bonds.

Boise State administrators shared the ratings results with the Idaho State Board of Education earlier today and received the board’s approval to go forward with issuance of the bonds. The bond proceeds will be used to construct an expansion of the Student Union Building ($30 million) and a student health, wellness, counseling and nursing building ($22.9 million). In addition, bond proceeds will be used to refund portions of series 1998, 2001 and 2002 bonds. The State Board also approved today Boise State’s plans to move forward with pre-construction work on a press box and sky suites addition to Bronco Stadium.

The favorable financial ratings earn Boise State a lower interest rate for the bonds.

The Moody’s report, issued Dec. 22, 2006, listed as the university’s strengths a sound fundamental market position as an urban university in a growing metropolitan area, consistently strong operating performance despite constrained state appropriations, and adequate financial resources which have exhibited modest growth over the last few years driven by operating surpluses and improved fundraising and investment returns. The university has had a three-year operating margin of 4.4 percent and good three-year average debt service coverage of 2.8 times, the Moody’s analysts noted.

In their rationale for assigning an “A+” rating to Boise State, Standard & Poor’s analysts noted that they expected that student demand will continue to be healthy and financial operations will remain positive.

“We anticipate that future debt will have dedicated associated revenue streams and/or there will be a commensurate increase in resources,” the report stated, noting that Boise State has a history of balanced financial operations, continued growth in enrollment with good acceptance and matriculation rates, limited competition in the region with an urban base for enrollment, and a wide array of undergraduate program offerings.

“The ratings services were impressed with our financial operating performance and our focus on our strategic direction and planning facilities that coincide with that direction,” said Stacy Pearson, vice president for finance and administration at Boise State. “This is a significant vote of confidence from
respected external sources on the financial wellbeing of the university as we move forward on athletic and academic construction projects.”

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Contact: Stacy Pearson, Vice President for Finance and Administration, (208) 426-1200
Media Contact: Sherry Squires, University Communications, (208) 426-1563, ssquires@boisestate.edu 

We’re proud to be the home of the undefeated, Fiesta Bowl Champion Broncos, the national champion student speech and debate team, and the nation’s 12th‑ranked engineering program among public, comprehensive universities.

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Last reviewed on Tuesday, February 27, 2007