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News
Moody's Upgrades Dowling College's Long-Term Bond Rating, Improved Operating Performance, Enrollment Growth Cited
Moody's Investors Service has upgraded Dowling College's long-term bond rating to Ba2 from Ba3 with a rating outlook of stable at the higher rating. The upgrade affects approximately $25 million of outstanding debt, Series 1993 (issued through the Town of Brookhaven Industrial Development Authority) and Series 1994, 1996, and 2002 (issued through the Suffolk County Industrial Development Agency).
The rating upgrade is based primarily on the College's improved operating performance and continued enrollment growth, Moody's stated in its report. In the fall of 2003, the number of matriculating freshmen grew by nearly 30% over the prior year, Moody's noted, with total full-time student enrollment for fall 2003 of 5,172.
"This report is an objective assessment of our improved financial standing and testament of the diligent work and support of our employees, faculty, and friends during the past few years," said Albert E. Donor, President of Dowling College. "The keen oversight and meticulous work of our fiscal staff has been instrumental in achieving this improved rating. From a solid financial base, we are poised to move forward with the next stage of our growth plan."
In Fiscal Year 2003, Dowling College posted its fourth straight year of positive operations, with a healthy operating margin of 4.5%, Moody's reported. Moody's projects that operations will remain balanced to positive given the College's "demonstrated ability to grow enrollment and generate increasing net tuition revenue." Improved philanthropic support of the College in recent months was also mentioned as an encouraging trend.
Moody's noted that Dowling continues to make progress on paying down outstanding bank lines of credit. In 2003, the College restructured its bank debt, consolidating the debt under an agreement with Commerce Bank. The agreement allows for a $2 million term loan, payable over seven years and a line of credit up to $4 million.
About Dowling College
Dowling College is an independent, coeducational college that serves more than 6,500 students at
its historic Rudolph Campus on the banks of the Connetquot River in Oakdale, NY, and the 105-acre
Brookhaven Campus in eastern Long Island and a business center located near the Nassau-Suffolk
border in Melville. Dowling offers Bachelor′s, Master′s, and Doctoral degrees in several
disciplines through its four schools: Arts and Sciences, Aviation, Business, and Education.
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