Last Updated: Saturday, September 8, 2007 7:58 PM CDT
Moody's reaffirms Nicolet College's superior bond rating
Moody's Investors Service recently reissued one of its highest bond ratings to Nicolet College, which translates into a low interest rate on money the college will borrow to pay for upcoming capital expenditures.
The superior Aa2 rating was given to Nicolet after Moody's conducted a rigorous review of all factors that determine the college's current level of financial stability and what the college's financial picture will likely be in the future.
In its report, Moody's cited Nicolet's strong fiscal management, historically low amounts of debt, rapid payback when debt is incurred, and rising property values throughout the district and subsequent expanding tax base as reasons for the superior rating.
Moody's issues bond ratings to give investors a sense of the amount of risk they would be taking by purchasing specific bonds. Nicolet's bonds "will be particularly attractive to investors, especially in light of the problems currently taking place in the credit market," said Carol Wirth, managing director at RBC Dain Rauuscher, which worked with Nicolet to prepare and issue the bonds. "There is a worldwide flight to quality and the college's high quality Aa2 rating has attracted investor interest."
Last year Nicolet received the same rating when it issued bonds to pay for the $3.5 million improvement project on the Rhinelander campus.
Wirth made the comments during a recent presentation to the Nicolet College Board of Trustees. The current transaction will include $1.6 million in bonds being issued at an interest rate of 4.8 percent. The payback schedule has the college retiring this debt in five years. The money will go for normal capital expenditures such as the latest computers and software, other new technology, and ongoing facilities maintenance.
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