Debt Financing & Management

Moody's 2007 Higher Education Outlook

Forecast:  Stable with increasing challenges in later years. 

Gateway to Debt Financing Resources

Public - Private Partnerships (P3) for Facilities

Rating Agencies

Split Ratings Study

A study by George K. Baum & Company examined the frequency of split ratings between Moody's and Standard & Poor's for both public and private institutions.

Moody's Cites Increasing Challenge of Managing Endowments. Citing a correlation between higher credit ratings and the execution of better investment management, Moody’s Investors Service's rating process is focusing more attention on an institution’s investment management and governance practices.

Resources

• What's a Central Bank?  This holistic approach to building financial strength is not only for large, complex, decentralized universities. (Business Officer, December 2006)
• Risks and Rewards  When executed under the right circumstances, swaps can help institutions achieve financial goals. (Business Officer, May 2006) 
• Public-Private Partnerships Advance U.S. Higher Education Student Housing Projects  Standard & Poor's report finds these partnerships beneficial in meeting the challenge of updating existing student housing facilities or developing new ones. S&P's rating methodology is also included.
• Debt Rules  What’s a smart way to manage debt? Develop a policy that’s in sync with your institution’s strategic plan. (Business Officer, March 2006) 
• Effectively Use Debt to Achieve Institutional Objectives  This on-demand webcast covers debt strategy and its relationship with the institution’s strategic plan, the basics of the capital markets and debt financing, the tools available in the capital markets, and the steps in the debt financing process.   (April 11, 2006)
• George K. Baum & Company's comprehensive list of nonrecourse financed privatized student housing projects completed or in progress. (PDF)
• Nonrecourse Student Housing Financing Accounting & Reporting: A White Paper on Recent FASB & GASB Guidance  George K. Baum & Company's analysis of recent accounting standards for nonrecourse student housing project debt. (PDF)
• How To Assess And Enhance Financial Health  St. Bonaventure uses a ratio analysis based on a composite financial index to communicate financial strengths and weaknesses and carry out the strategic plan. (Business Officer, April 2003)
• Take A Strategic Direction With Debt  The right strategy can direct your institution toward smart financing decisions about its entire debt portfolio. (Business Officer, September 2002)

NACUBO Resource:  Anna Marie Cirino, associate director of financial management policy, 202.861.2570