TEXT-Fitch affirms Bethune-Cookman University, Fla. at 'A+'

Sept 19 - Fitch Ratings affirms the 'A+' rating on approximately $23.8
million Higher Educational Facilities Financing Authority (HEFFA), FL revenue
bonds issued on behalf of Bethune-Cookman University (BCU or the university).

The Rating Outlook is Stable.

SECURITY

The bonds are secured by loan payments made by BCU to HEFFA. These loan payments
are an unsecured general obligation of BCU.

KEY RATING DRIVERS

STABLE CREDIT CHARACTERISTICS: The 'A+' rating reflects BCU's history of
positive operations, which has bolstered the sound financial cushion; stable
enrollment levels; and manageable debt burden. Counterbalancing factors include
the concentrated revenue base and the increased level of student aid required in
fiscal 2012, given current economic conditions.

POSITIVE OPERATING PERFORMANCE: BCU has consistently generated operating
surpluses, albeit at a declining level, over the past five years, while at the
same time moderating the level of tuition increases.

RELATIVE STABILITY IN STUDENT DEMAND: Total headcount has remained fairly
constant since at least 2008, which serves to drive operating performance given
the tuition dependent nature of the institution.

MANAGEABLE DEBT: Based on unaudited numbers, fiscal 2012 is expected to show a
manageable debt burden, with debt service consuming 4.1% of operating expenses.
This level is expected to remain fairly constant in the near term, given the
lack of additional debt plans.

WHAT COULD TRIGGER A RATING ACTION

PRESSURED FINANCIAL AID LEVELS: Should the level of student aid required to
admit students continue to impact operating performance, the rating or outlook
may be negatively affected.

CREDIT PROFILE

Historically, BCU has generated significant operating margins, averaging 7.7%
over the past five years. While still generating an acceptable level, the margin
in fiscal 2012 (based on unaudited June 30, 2012 numbers) is expected to be
lower, at approximately 3.4%. Net tuition and fees showed a slight decline in
2012 because of a substantial increase in student aid. This increase in aid was
necessitated by a decrease in Florida state aid, in combination with the
continued weakness in the economic conditions and families' ability to absorb
tuition costs.

Recognizing the need to keep tuition affordable, tuition increases have been
modest. Fall 2012 reflected a 3% increase, following a 4% increase the prior
year.

Management has been able to continue to generate surpluses through the
implementation of various budgetary reductions, including the freezing of open
positions and delaying cost of living salary adjustments.

Fitch views BCU's budgetary practices as conservative, as the university
typically budgets for a smaller enrollment than what is actually expected. In
addition, BCU also budgets for full depreciation, providing a level of financial
flexibility.

The operating surpluses generated have contributed to the growth of available
funds (defined by Fitch as cash and investments not restricted). In 2012,
available funds totaled approximately $58 million, providing an acceptable level
of liquidity - 90% of operations and 202% of debt. The 2012 results are
comparable to the levels achieved in fiscal 2011.

BCU was founded in Daytona Beach, FL in 1904 by Mary Mcleod Bethune, a major
civil and human rights activist. The school was originally founded as an
all-girls school for African-Americans. Subsequently, the school merged with
Cookman Institute of Jacksonville, FL and later become affiliated with the
United Methodist Church. Today, BCU is a co-educational institution and is one
of 105 federally-designated historically black colleges and universities in the
U.S., and one of four located in Florida. Enrollment has been fairly level in
recent years, with fall 2012 showing enrollment of 3,544 students.

Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Revenue-Supported Rating Criteria', dated June 12, 2012;
--'U.S. College and University Rating Criteria', dated May 25, 2012;
--'Fitch Rates Bethune-Cookman Univ., FL Revs 'A+', dated Oct. 13, 2010.

Applicable Criteria and Related Research:
Revenue-Supported Rating Criteria
U.S. College and University Rating Criteria