University System of NH Receives Positive Ratings for Planned $145 Million Construction and Renovation of Student Housing Facilities

Outlook is “Stable” for the USNH According to Standard & Poor’s and Moody’s Rating Agencies

February 17, 2006 – Lee, NH – The independent rating agencies of Standard & Poor’s and Moody’s affirmed their A+ and A1 ratings of the University System of New Hampshire (USNH) in anticipation of the March issuance of $145 million in bonds through the New Hampshire Health and Educational Facilities Authority. The proceeds from the sale of the 2006 bonds will be used for construction and renovation of student housing facilities at the University of New Hampshire (UNH) in Durham, Plymouth State University (PSU), and Keene State College (KSC).

USNH is planning to use these 2006 bond funds for the construction of two student residence projects at each of the three campuses to complete the plan that enables each campus to house at least 60% of its undergraduates on campus. The 60% target is a stated goal of the USNH Board of Trustees to help foster an enhanced living-learning environment on each campus, and would be an increase from approximately 54% for 2005. The expanded housing is also responsive to requests from host communities for USNH to increase the number of students living on its campuses, and will also help relieve housing constraints.

In issuing an A+ rating, Standard & Poor’s cited “strong fiscal management, evidenced by positive financial operations,” and “increasing enrollment levels and demand,” and “support from the state, demonstrated by rises in both operating and capital appropriations.” Moody’s cited “strong management and board oversight, and careful evaluation of capital plans” and “stable market position despite strong competition from other public and private institutions in the Northeast region” among the strengths of USNH. Both agencies listed several challenges facing USNH, including “relatively high tuition rates as compared to other public universities…as a result of historically modest state operating support” and “significant issuance of new debt since fiscal 2001.”

“Our Board of Trustees and our presidents have made a commitment to upgrade our campuses so they can continue to effectively compete with peer institutions in terms of academic quality, and in terms of the quality of life they can offer to their students,” said USNH Chancellor Stephen Reno.

Residence hall construction at the three campuses will result in an additional 1,844 beds upon completion. This includes 1,127 at UNH, 370 at KSC, and 347 at PSU. The rehabilitation of the historic Mary Lyons Hall at Plymouth State University will result in 248 renovated beds.

“These bond funds, coupled with capital budget funds provided by the New Hampshire Legislature for the Knowledge Economy Education Plan (KEEP-NH) to support upgrades in our science facilities, are major components of our 12-year, $850 million capital plan that we initiated in 2001,” he continued. “Our Board views this effort as a major investment for the future for public higher education in New Hampshire that supports the University System mission and will benefit our citizens and our economy.”

The State Legislature approved the remaining half of the two-phase $210 million KEEP-NH effort in 2005. The second phase will fund several construction and renovation projects for science, engineering, and high-technology education at each campus over an eight-year period ending in 2013. In addition to the $210 million of KEEP-NH funding, the other sources of funding for the capital plan for 2001 through 2013 include $310 million from bonds, $100 million from federal and private sources, and $230 million from operating funds and capital leases, The Board of Trustees does not intend on issuing any additional bonds for several years.

About the University System of New Hampshire:

The mission of the University System of New Hampshire (USNH) is to serve the higher educational needs of the people of New Hampshire. Through its sister institutions ( University of New Hampshire, Plymouth State University, Keene State College, and Granite State College), USNH presently serves almost 30,000 students.

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UNH | Plymouth State | Keene State | Granite State