Weekly Market Update

SCHOOL MERGER IN PHILADELPHIA SHOWING EARLY SUCCESS

Thursday, April 19, 2018

Following last year's merger of Thomas Jefferson University with Philadelphia University, the school--which retained the name Thomas Jefferson University--is reporting a rise in donations and undergraduate applications. Additional benefits from the merger include collaboration and partnerships between the school's departments. Notably, Thomas Jefferson University's medical programs are benefiting from Philadelphia University's expertise in engineering, and vice versa. The school's chancellor has said that he has received significant interest in learning about the merger from other universities. Facing mounting financial pressure and declining enrollments, schools around the country appear to be showing a new willingness to consider strategic initiatives like the Jefferson-Philadelphia University merger. The school is working through this and other acquisitions, and saw an operating loss of nearly $30 million in six months ending December 31; however, efficiencies from the consolidation are beginning to emerge.

In Other News

Rating Agency Update

  • Moody's affirmed Florida State University's Aa2 rating. The outlook is stable.
  • Moody's affirmed City University of New York's Aa2 rating. The outlook is stable.
  • Moody's assigned Aa3 to University of Cincinnati's Series 2018A and 2018B General Receipts Bonds and 2018C Floating Rate Notes. The outlook is stable.
  • Moody's affirmed Clark Atlanta University's Ba2 rating. The outlook is revised from stable to positive.
  • Moody's affirmed Southern Methodist University's Aa3 rating. The outlook is revised from negative to stable.
  • S&P affirmed Juniata College's BBB+ rating. The outlook is revised from stable to negative.
  • S&P affirmed University of North Carolina at Pembroke's A- rating. The outlook is stable.
  • S&P affirmed Purdue Research Foundation's AA- rating. The outlook is stable.
  • S&P affirmed Houston Baptist University's BBB- rating. The outlook is stable.
  • S&P assigned AA- to Case Western Reserve University's Series 2018 Refunding Bonds. The outlook is stable.