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TEXT-Fitch affirms Coastal Carolina University, S.C. at 'A+'
February 8, 2013 / 10:05 PM / 5 years ago

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 ''. 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

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