The New School Receives Strong Bond Ratings"Growing Enrollments," "Strong Governance and Management" and "Strong Financial Outlook" Herald Capital Construction |
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NEW YORK, October 29, 2010—The New School received "A" category ratings from Moody's Investors Service and Standard & Poor's Ratings Services this week and will shortly issue tax-exempt bonds to finance construction of the University Center, a mixed-use building that will transform its urban campus. Ratings of "A-" from Standard & Poor's and "A3" from Moody's have been assigned to about $300 million in Series 2010 bonds that will be sold in mid-November by the New York State Dormitory Authority. Both agencies assigned to the university a stable outlook. "The ratings reflect The New School's reputation as a shrewd agent of intellectual change," said Bob Kerrey, the university's president. "Demand for our academic programs has grown, even in the midst of an economic downturn. These ratings are mindful of growing enrollments that demonstrate The New School's solid financial outlook, as well as a campus-wide transformation into a major degree-granting urban institution." The 365,000 square-foot University Center, which will be built on Fifth Avenue between 13th and 14th Street, is the largest construction project The New School has undertaken. When it opens in September 2013, the building will accommodate much of the growth the university has experienced in the past several years. Housing expanded academic programs, a state-of-the-art auditorium, a library, and space for students to congregate, the 16-story building will also serve as a student residence, providing more than 600 beds steps away from the campus core. In their rationales, both ratings agencies spoke highly of the university's fiscal and managerial profile. Moody's cited a "well-established reputation as a large urban university with strong academic programs," while Standard & Poor's credited the university with "successful fundraising" and "solid financial operating performance." Both agencies indicated that sound management and financial performance could lead to higher ratings once the construction debt has been absorbed. "The New School has a history of masterful financial stewardship we expect to continue in the coming years," said Michael J. Johnston, Chair of the Board of Trustees. "As the university prepares to welcome David Van Zandt as its next president in January, we see these ratings as a vote of confidence in the university's future, affirming The New School's position as a leader in progressive, interdisciplinary learning and civic involvement." The University Center is designed by Roger Duffy of Skidmore, Owings & Merrill. The New School's partners on the project are developer The Durst Organization, Tishman Construction, and SLCE Architects, which designed dormitory interiors. Demolition on the university-owned site will continue for the next several weeks with construction on the University Center expected to begin early in 2011. Downloadable renderings of the project are available in an image gallery at www.newschool.edu/pressroom/universitycenter.html |
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