Moody's gives Fordham University, N.Y., bonds A2 rating

Moody's Investors Service said it assigned an A2 underlying rating to Fordham University's $97.2 million of revenue bonds, split evenly between series 2008A-1 and 2008A-2, to be issued through the Dormitory Authority of the State of New York.

Sale of the bonds is expected on May 20.

The bonds are being issued as variable rate demand obligations and will initially bear interest at the weekly rate.

The series 2008A bonds will be supported by an irrevocable direct pay letter of credit provided by Allied Irish Banks, and Moody's expects to assign a rating to the bonds based on the letter of credit upon review of the documents.

Moody's affirmed the underlying rating on the university's outstanding debt. And the university's outlook was revised to positive from stable.

Bond proceeds will refund the university's auction-rate debt, insured revenue bonds series 2005A and pay the costs of issuance.

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