TEXT-Fitch affirms Coastal Carolina University, S.C. at 'A+'
Feb 8 - Fitch Ratings affirms the 'A+' rating on approximately $53.6 million of higher education revenue bonds, series 2013 for Coastal Carolina University (CCU), South Carolina. The series 2013 bonds are secured by a pledge of all revenues of the university on a parity basis with outstanding revenue bonds. The pledged revenues exclude state appropriations and tuition revenues pledged to general obligation (GO) state institution bonds (rated 'AAA' by Fitch). The Rating Outlook is Stable. Pro forma leverage and debt service coverage ratios have been revised as a result of characterizing a real estate lease agreement entered into by the university, subsequent to fiscal 2012, as debt. Total pro forma debt including GO state institution bonds secured by the state and capital leases, will total $221.7 million, generating a debt burden of 9.6%, consistent with the rating level. Associated coverage of maximum annual debt service (MADS) is equal to 1.5 times (x). Assuming the issuance of approximately $38 million in bonds for the second phase of the student housing project expected in the coming year, the debt burden increases to 11.1% and pro forma coverage declines to 1.3x. Fitch believes these metrics remain consistent with the 'A+' rating. Please refer to the amended new issue report released on Feb. 8, 2013 for detailed information. 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', June 12, 2012; --'U.S. College and University Rating Criteria', May 24, 2012; --'Fitch Rates Coastal Carolina University, A+; Outlook Stable', Jan. 23, 2013; --'Coastal Carolina University, South Carolina', Feb 1, 2013. Applicable Criteria and Related Research: Revenue-Supported Rating Criteria U.S. College and University Rating Criteria Coastal Carolina University, South Carolina