Moody's rates Western Michigan University bonds underlying A2

Moody's Investors Service said it assigned an A2 underlying rating to Western Michigan University's $123.795 million of general revenue bonds, series 2008. The outlook is stable.

The expected sale date for the bond offering is April 3.

Moody's also affirmed its underlying rating of A2 with a stable outlook on Western Michigan University's outstanding bonds.

The series 2008 bonds are expected to be insured by FSA, whose current financial strength rating is Aaa with a stable outlook. Subject to Moody's review of the insurance policy and other relevant documentation, the bonds will carry the financial strength rating of the insurance provider. Moody's will nonetheless maintain its underlying rating.

Upon the sale of the series 2008 bonds and conversion of the series 2007 bonds, the University's debt portfolio will be composed of 16% variable-rate debt with a put feature and 84% fixed-rate bonds.

Proceeds will be used to refund the university's general revenue bonds, series 2000 and series 2002A and to pay costs of issuance. The university may also choose to use bond proceeds to pay the cost of terminating swaps associated with the series 2000 and series 2002A bonds.

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