Join for FREE, and start talking with other members, weighing in on community discussions, and more.
Also, by registering and logging in you'll see fewer ads and pesky welcome messages (like this one!)
Amherst Coll, MA's Debt Outlook Revised To Negative On Possible Liquidity Concerns
SAN FRANCISCO Feb. 18, 2009-- Standard & Poor's Ratings Services revised its outlook to negative from stable and affirmed its 'AAA' and 'AAA/A-1+' ratings on the Massachusetts Health and Education Facility Authority's outstanding debt, issued on behalf of Amherst College. In addition, Standard & Poor's assigned its 'AAA' long-term rating to the Trustees of Amherst College's $100 million taxable bonds, series 2009A, also issued on behalf of Amherst College.
"The negative outlook reflects possible liquidity concerns in the near term, as evidenced by the college's need to issue long-term debt ($100 million) to meet its working capital needs," said Standard & Poor's credit analyst Jessica Matsumori. "In addition, Amherst has experienced a substantial decline in financial resources, as well as deterioration in its investments due to recent market turmoil."
Proceeds from the series 2009A bonds will be used primarily to fund working capital at the college. The bonds are expected to be issued as fixed-rate debt, with a bullet maturity at the end of 30 years. Bond proceeds will be used in lieu of cash from the endowment to meet operational needs at the college over the next two years.