Weekly Market Update

US DEPARTMENT OF EDUCATION CONSIDERS REORGANIZATION

Thursday, February 22, 2018

The U.S. Department of Education has proposed broad administrative changes in response to President Trump's 2017 executive order instructing federal departments to consolidate or eliminate non-essential agencies and programs. The proposal, whose implementation would be overseen by Betsy DeVos, the Education Secretary, would combine multiple department units and eliminate a number of executive positions. Among the changes, the Office of the Under Secretary, which has been instrumental in past higher education policy, would be eliminated. Vickie Schray, a former deputy assistant secretary for the DOE, noted that consolidation would bolster higher education alternatives, in keeping with the current administration's stated objectives.

In Other News

Rating Agency Update

  • Moody's assigned Aa3 to University of Alabama in Huntsville's Series 2018A Revenue Bonds. The outlook is stable.
  • S&P affirmed the University of Pennsylvania's AA+ rating. The outlook is stable.
  • S&P downgraded Chatham University to BBB- from BBB. The outlook is stable.
  • S&P affirmed Centre College of Kentucky's A rating. The outlook is stable.
  • S&P assigned BBB to the University of New Haven's Series K Revenue Bonds. The outlook is stable.
  • S&P affirmed Texas Woman's University's A+ rating. The outlook is stable.
  • S&P assigned A- to Fairfield University's Series S Revenue Bonds. The outlook is stable.
  • S&P affirmed Western Kentucky University's A- rating. The outlook is stable.
  • S&P affirmed The Julliard School's AA rating. The outlook is stable.
  • S&P affirmed Guilford College's BBB rating. The outlook is stable.