Moody's Upgrades Bowdoin Bond Rating
Story posted December 15, 1997
BRUNSWICK, Maine -- Moody's Upgrades Bowdoin Bond Rating Moody's Investors Service has upgraded Bowdoin's debt rating to Aa3 from A1, a move that will allow the College to earn better rates for future borrowing needs.
Moody's cited Bowdoin's high-caliber student body and applicant pool, its improved financial performance in recent years, and a strong financial management team.
According to Kent John Chabotar, vice president for finance and administration and treasurer, the upgrade will make it easier and more economical for the College to issue bonds for the planned dormitory/dining expansion next year. Bowdoin expects to issue $14 million in new bonds to finance the expansion.
The rating upgrade stems from $10.7 million in bonds issued in 1985 and 1991, used primarily to finance construction of Farley Field House.
"Moody's expects that the College's operating performance will remain favorable, as it has been for most of this decade," Moody's analysts wrote in announcing the improved debt rating. "A strong financial management team implemented a variety of effective measures in the early 1990's to restore and then maintain financial equilibrium." Moody's cited the College's "strong national reputation (that) contributes to a large applicant pool" as a key to maintaining stable enrollment figures in coming years.
Bowdoin's acceptance rate 30 percent over the past five years and yield 35 percent of accepted applicants contribute to its selectivity and place it in competition for high-quality students with institutions such as Bates, Brown, Colby, Dartmouth, Middlebury and Williams.
The College's financial performance, particularly the $125 million New Century Campaign, has helped Bowdoin solidify its financial resources, Moody's said.
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