Fitch Affirms Dorm Authority of State of NY Lease Revs (SUNY Facilities) at 'A+'; Outlook Stable

NEW YORK--(Business Wire)--
Fitch Ratings affirms its 'A+' unenhanced rating for approximately $728 million
of outstanding Dormitory Authority of the State of New York (DASNY) lease
revenue bonds (State University Dormitory Facilities) rated by Fitch. The Rating
Outlook is Stable.

Lease revenue bonds for dormitory facilities (lease revenue bonds) are paid
primarily from rents and charges (housing revenues) generated by system-wide
occupancy of bond financed student residence halls. However, as lease revenue
bonds are a general obligation of the State University of New York (SUNY, or the
system), payable from all legally available sources, bondholders have access to
SUNY's broader resources in the unlikely event housing revenues are insufficient
to meet related obligations. Under an agreement with DASNY, SUNY is obligated to
deposit housing revenues into a dormitory income account (DIA) which is held by
the Comptroller of the State of New York. Following the funding of annual debt
service and reserve fund requirements for lease revenue bonds, SUNY has the
ability to withdraw funds from the DIA and to use such funds for other
university purposes.

The 'A+' rating reflects the scope and diversity of SUNY's 75,202 bed, 26 campus
residence hall network (the housing network); the stability of SUNY's
enrollment, which has led to solid occupancy of residence halls and strong
coverage of lease revenue bond debt service, without the need to draw upon the
system's broader resources; and SUNY's ability to maintain sizeable fund
balances to support housing operations and maintenance. Primary credit concerns
include on-going capital needs related to the housing network, significant
portions of which will likely be debt financed; and the potential impact of the
state's economic slowdown on SUNY's overall finances. Concerns regarding
additional lease revenue bond issuance are partially mitigated by strong demand
for housing on SUNY campuses, and the system's ability to increase the housing
network's rates and charges, without a significant loss of students, to manage
an increased debt burden.

The occupancy rate of the residence halls for fall 2008 was 96.7% and has
averaged 96.9% over the past five years. The system's headcount enrollment for
fall 2008 was 217,858, up 6.8% since fall 2004. Full-time equivalent enrollment
was 189,960, an 8.7% increase since fall 2004. Enrollment excludes students
enrolled at SUNY's 30 locally sponsored community colleges. SUNY does not
maintain a system-wide housing waiting list, but the historically high occupancy
rate of residence halls indicates strong demand. With 75,202 available beds,
SUNY can accommodate 34.5% of its headcount enrollment.

For fiscal 2008, the housing network generated gross revenues of $423.6 million,
a 9.6% increase from fiscal 2007. Net revenues, before debt service and
transfers, were $131.9 million, up 16.7% from fiscal 2007. Maximum annual debt
service (MADS) on SUNY's lease revenue bonds is approximately $79.4 million and
expected to occur in fiscal 2013. Fiscal 2008 net revenues would cover MADS by a
solid 1.7 times. As of June 30, 2008, the total balance of SUNY's dormitory
operations and repair and rehabilitation funds was $199.1 million and covered
68.3% of fiscal 2008 operating expenses, excluding debt service and transfers.
As of June 30, 2009, the total fund balance was $224.5 million.

SUNY has approximately $975 million of dormitory facilities lease revenue bonds
outstanding. It anticipates issuing approximately $100 million of additional
debt for residence halls in the summer or fall of 2009 (fiscal 2010).

Created in 1948, SUNY is one of the largest public university systems in the
country. It is comprised of 64 campuses located throughout New York State,
including hospitals and clinics, and locally sponsored community colleges.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, www.fitchratings.com. Published ratings, criteria and
methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Colin Walsh, +1-212-908-0767
Douglas J. Kilcommons, +1-212-908-0740
Cindy Stoller, +1-212-908-0526 (Media Relations)
cindy.stoller@fitchratings.com

Copyright Business Wire 2009