<p>In the April 14, 2013 New York Times, there was a disturbing article saying that Tulane's credit rating declined. What happened and will it impact the school?</p>
<p>This is old news…</p>
<p>[S&P</a> downgrades TU?s credit rating - The Tulane Hullabaloo : News](<a href=“thehullabaloo.com”>thehullabaloo.com)</p>
<p>Not so disturbing, the NY Times is blowing this a bit out of proportion. Isn’t even new news. [S&P</a> downgrades TU?s credit rating - The Tulane Hullabaloo : News](<a href=“thehullabaloo.com”>thehullabaloo.com) As both articles say, this isn’t unique to Tulane.</p>
<p>An A rating is still strong. The NYT article says this calls into question the ability of universities to maintain and improve infrastructure, but a big reason for Tulane’s move was the issuance of $100 million in bonds and other debt in order to build new dorms and dining facilities among other uses. Also, as cited in the article and also from conversations I have had, Tulane is planning on a major capital campaign which should bring the asset/debt ratio into a stronger range.</p>
<p>Here is the NYT article <a href=“Many Colleges and Universities Face Financial Problems - The New York Times”>Many Colleges and Universities Face Financial Problems - The New York Times; The one I found says April 12, so not sure if we are talking about the same article. Maybe the difference between on-line and print?</p>
<p>Anyway, bottom line I only see the university continuing to expand programs and improve its infrastructure. While all universities have to be prudent these days, I don’t see any dark clouds on Tulane’s horizon at this time.</p>
<p>Edit: X-posted with Txqueso.</p>
<p>S&P: The same guys that didn’t downgrade a single RMBS (residential mortgage backed security). A Tulane A rating is still well within investment grade. Also considering the low interest rate environment, it’s a good time to borrow money.</p>
<p>Thanks everyone, in particular FC. By the way, it’s the same article, FC.</p>