Rutgers University, New Jersey; CP; Private Coll/Univ ...P...Rutgers University, New Jersey; CP;...
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Rutgers University, New Jersey; CP;Private Coll/Univ - GeneralObligation; Public Coll/Univ -Unlimited Student Fees
Primary Credit Analyst:
Ken W Rodgers, New York (1) 212-438-2087; [email protected]
Secondary Contact:
Laura A Kuffler-Macdonald, New York (1) 212-438-2519; [email protected]
Table Of Contents
Rationale
Outlook
Enterprise Profile
Financial Profile
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Rutgers University, New Jersey; CP; PrivateColl/Univ - General Obligation; Public Coll/Univ -Unlimited Student Fees
Credit Profile
US$220.0 mil GO rfdg Bnds ser 2020S dtd 03/11/2020 due 06/15/2046
Long Term Rating A+/Stable New
Rutgers Univ PCU_USF
Long Term Rating A+/Stable Affirmed
Rationale
S&P Global Ratings assigned its 'A+' long-term rating to Rutgers University, N.J.'s series 2020S general obligation (GO)
bonds. In addition, we affirmed our 'A+' long-term rating on Rutgers' outstanding bonds (various series) and our
'A+/A-1' rating on its $62.8 million series 2009G GO variable-rate demand bonds (VRDBs). We also affirmed our 'A-1'
commercial paper (CP) rating on the university's $70.2 million outstanding CP notes. The outlook, where applicable, is
stable.
Total outstanding debt is $2.3 billion as of Dec. 31, 2019 (unaudited) and $2.0 billion as of the university's latest
audited fiscal year ended June 30, 2019.
The long-term rating reflects our view that Rutgers' enterprise profile is very strong, characterized by its role as the
flagship University of New Jersey's higher educational system, consisting of 11 public colleges and universities, with
favorable enrollment, retention and graduation rates. In addition, the rating reflects our view that Rutgers' financial
profile is strong with sound financial management policies, a respectable debt burden and healthy available resources,
though financial operating performance is variable on an adjusted full accrual basis with breakeven and a negative
1.9% margins in fiscal years 2017 and 2018, respectively, and a positive 1.5% margin in 2019. Although we deem
available resources healthy nevertheless, they trail adjusted unrestricted net assets (UNA)-to-debt (and pro forma debt)
median ratios for the rating category. Also, Rutgers' net pension liability decreased by 2.3% in fiscal 2019 to $1.7 billion
from $1.8 billion in fiscal 2018, largely owing to changes in plan assumptions administered by New Jersey. Our
understanding is that New Jersey, as a matter of practice, supports its public university's pension and other
postemployment benefit (OPEB) obligations. Combined we believe these credit factors lead to an indicative standalone
credit profile of 'a+' and long-term bond rating of 'A+'.
The long-term rating and stable outlook further reflect our assessment of Rutgers':
• Favorable stature as New Jersey's flagship public university;
• Growing full-time equivalent (FTE) enrollment increasing almost 0.6% in fall 2019 to 62,491 from 62,105 in fall
2018, somewhat selective admissions, and good student quality;
• Financial operating performance that in most of the past five fiscal years on an adjusted full-accrual GAAP basis has
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been breakeven or better, except for fiscal 2018's negative 1.9% operating deficit, and positive results are
anticipated for fiscal 2020;
• Healthy available resources, although adjusted UNA declined to 13.5% of adjusted operating expense in fiscal 2019
from 14.6% in fiscal 2018 and is 26.7% of pro forma debt; and
• Moderate debt of $2.32 billion with a 4.6% pro forma MADS debt burden that smooths the total debt amortization
over 30 years to adjust for long-dated bullet maturities.
Rutgers' is a large research focused university with a large breadth and depth of academic offerings and many facilities
with locations in all 21 New Jersey counties, three main campuses, and four operating units that make it a major public
university system; there are 32 schools and colleges within the four operating units: Rutgers University-New
Brunswick, Rutgers University-Newark, Rutgers University-Camden, and Rutgers Biomedical and Health Sciences.
Rutgers' bonds are secured by available funds of the university, which includes a broad range of university funds, and
we consider this pledge to be an equivalent to an unrestricted student fee pledge. We understand the majority of the
proceeds of the 2020 series S bonds will be used to refund New Jersey Economic Development Authority-Rutgers'
lease revenue series 2013 bonds for debt service savings.
The dual rating applicable to the series 2009G bonds reflects the 'A+' long-term rating on Rutgers' stand-alone credit
quality and the short-term ratings reflect a standby bond purchase agreement (SBPA) liquidity facility provided by TD
Bank that expires on July 1, 2023. The SBPA will only enhance the bonds in the daily and weekly interest-bearing-rate
mode (the covered modes). The SBPA provider's obligation to purchase un-remarketed tendered bonds during the
covered modes will terminate without notice to bondholders should various events outlined in the SBPA occur,
including the lowering of the long-term component of the rating to below 'BBB-'. We have reviewed these events and
deemed them consistent with our published ratings criteria.
The CP notes are secured by the university's general obligation and supplemented by a liquidity facility provided by
Wells Fargo Bank N.A. for $200 million series A through D notes and by Bank of America for $100 million series E
notes. As of June 30, 2019, $175.7 million of these notes were outstanding, and Rutgers' board has approved
authorization for up to a total of $300 million of CP notes issued and outstanding under the program. The university
can draw on the funds from the Wells Fargo and Bank of America standby CP purchase agreements that terminate on
April 20, 2021, and July 31, 2020, respectively, for any CP notes due and not successfully remarketed. We understand
the university had $2.3 billion in cash and investments as of Dec. 31, 2019 (unaudited), including $818.0 million of
operating funds that have at least monthly liquidity.
Rutgers remains focused and has made measured progress, in our view, integrating its various business and financial
operations among its four constituent business units, including merging two law schools into one and updating its
operating and financial management systems. We understand Rutgers' is considering merging its two medical schools
in Newark and New Brunswick into one to achieve better efficiencies.
Rutgers' capital spending is robust, in our view, although showing some signs of moderation in the current year. The
university reports that since the fall of 2012 it has completed or begun more than $2 billion in capital construction
projects funded with some combination of bonds, state funds, gifts and other university funds. As of fiscal year end
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
2019 Rutgers had approximately $735.5 million of capital projects under construction, in the design stage with
approved sources of funding and in the design stage pending determination of sources of funding.
Purchases of capital assets and construction in progress totaled $373.9 million in fiscal 2019 and $379.6 million in
fiscal 2018. The cash flow Rutgers realized from depreciation in fiscal years 2019 and 2018 was $181.3 million and
$181.0 million, respectively. We understand the majority of projects are on time and budget. Projected cash spending
for capital projects for fiscal 2020 is approximately $236 million and anticipated to be even lower in fiscal 2021. Key
projects completed in 2019 or scheduled to be completed in 2020 include an athletics performance center and parking
garage estimated to cost $115 million and an honors living and learning community estimated to cost $81 million. Two
larger projects approved by Rutgers' board of governors include the Rodkin academic success center with an
estimated cost of $65 million and upgrades to Newark's co-generation plant estimated to cost $50.5 million.
The university also reports that its "Our Rutgers, Our Future" capital campaign closed in December 2014 and raised
$1.04 billion, exceeding its $1 billion goal. We also understand gifts and pledges received for the benefit of the
university totaled $250.9 million and $223.4 million in fiscal years 2019 and 2018, respectively. In addition, for fiscal
2020 Rutgers anticipates gifts and pledges of between $240 million to $245 million. We also understand Rutgers
received $100 million in fiscal 2019 from its partner RWJ Barnabas Health pursuant to a master affiliation agreement
signed in July 2018. Furthermore, beginning on July 1, 2019, Rutgers commenced the silent phase of its next
campaign. Rutgers' endowment realized an 11% increase to $1.37 billion at fiscal year-end 2019 compared with the
prior year.
We rate Rutgers' debt above the rating associated with New Jersey. We believe this differential is warranted. Our view
in this matter recognizes that Rutgers derives a fair amount of financial support from the state for its operating
appropriation, limited capital support, and costs associated with its fringe benefits. Nevertheless, Rutgers derives the
majority of its revenue, approximately 77%, from nonstate supported sources including tuition and fees, grants and
contracts revenue, auxiliary operations, and health care and professional services revenue. In addition, we view
Rutgers' available resources as healthy and further enhanced by its robust philanthropic support. However, any rating
action affecting the rating on the state could become a greater factor in our future assessment of the rating on Rutgers.
Outlook
The stable outlook reflects our view that Rutgers' enrollment and other demand metrics will remain favorable, financial
operating performance on an adjusted full-accrual basis for fiscal 2020 will be break even or better while available
resources have improved slightly from operating cash flow, investment performance, and philanthropic support. In
addition, we believe additional debt issuance will be modest if any and balanced with improved available resources.
Downside scenario
A lower rating is possible if enrollment declined significantly, financial operating performance on an adjusted full
accrual GAAP basis is negative, or available resource ratios become further constrained relative to operations and
debt. In addition, issuance of additional debt without a commensurate increase in available resources could lead to
consideration of a lower rating.
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
Upside scenario
Rutgers' financial performance and available resources, in our view, would need to improve considerably for
consideration of a higher rating over the next two years to offset risks associated with increasing exposure to health
care operations, flat state operating appropriation, pension funding, and funding long-term capital needs.
Enterprise Profile
Industry risk
Industry risk addresses the higher education sector's overall cyclicality, competitive risk, and growth by applying
various stress scenarios and evaluating barriers to entry, levels and trends of profitability, substitution risk, and growth
trends observed in the industry. We believe the higher education sector represents a low credit risk when compared
with other industries and sectors.
Economic fundamentals
In our view, Rutgers has limited geographic diversity with approximately 83% of the total undergraduate student
population coming from New Jersey. Therefore, our assessment of Rutgers' economic fundamentals is anchored by the
New Jersey GDP per capita of $75,494.
Market position and demand
Rutgers is New Jersey's flagship comprehensive research-based university with academic offerings that include more
than 100 undergraduate majors and 200 graduate and professional degree programs. Total university-wide enrollment
was 71,011 in fall 2019--a 0.6% increase over the enrollment in the previous year.
Rutgers became a member of the Big Ten Athletic Conference and the Big Ten Academic Alliance in 2012. The
Alliance is a consortium of world-class research universities that foster collaboration and advancing member
institutions research and academic programs. We understand that Rutgers ranks in the top 20 public universities based
on annual research expenditures according to the National Science Foundation-Higher Education Research and
Development Survey. Research grants and contracts revenue totaled $582 million in 2019, which is up 69% from $345
million in 2013 due largely to the acquisition of programs and faculty associated with the relatively new Rutgers
Biomedical and Health Sciences. We understand research and sponsored grants and contracts awarded slightly topped
$750 million in fiscal 2019 placing it in the top 20 public universities. Grants and contacts revenue is expected to be
approximately the same amount for fiscal 2020 as was realized in 2019.
Since the acquisition at the beginning of fiscal 2014 of programs and faculty associated with the new Rutgers
Biomedical and Health Sciences, total FTE enrollment has risen 2.2% in fall 2016, 0.4% in fall 2017, 2.5% in fall 2018
and 0.6% to its current 62,491 and is expected to continue to increase modestly each year. The New Brunswick
operating unit is the largest of the four with a total headcount of 43,389 in fall 2019, relatively flat compared the prior
year. It is followed by Newark with 13,605 enrolled in 2019, a 1.1% increase from the 13,451 enrolled in 2018, followed
by Camden with 7,233 in fall 2019 relatively flat in comparison to the fall 2018. Enrollment in the Biomedical and
Health Sciences unit totaled 6,784 for fall 2019, down approximately 2% from fall 2018 enrollment of 6,900.
We understand approximately half of the students on the New Brunswick, Newark, and Camden campuses reside in
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
university-owned facilities with approximately 18,500 beds.
Freshman applicants were relatively flat in fall 2019 at 45,262 in comparison to the prior year, although Rutgers'
selectivity and matriculation declined slightly from 2018 levels to 76.6% and 27.3%, respectively. Total resident tuition
and room and board for fall 2019 is $28,482 and moderate, in our view, for comparable-sized public universities.
Rutgers Biomedical and Health Sciences operating unit signed a master affiliation agreement early in fiscal 2015 with
Robert Wood Johnson University Hospital (RWJUH) in New Brunswick. RWJUH is a subsidiary of Robert Wood
Johnson Health Care Corp. and the latter organization merged with Barnabas Health in 2017 to become RWJ
Barnabas Health. Rutgers created a new 501[c][3] corporation known as Rutgers Health Group in July 2017 that is now
managing the whole faculty practice across both of its medical schools. In July 2017, Rutgers Health, the clinical brand
of Rutgers, signed a letter of intent with RWJ Barnabas Health to partner and create the state's largest academic health
care system. Rutgers Health in July 2018 signed a master affiliation agreement with RWJ Barnabas Health to form a
world-class academic health center that functions as one system. The master affiliation agreement has multiple goals
and includes a $100 million investment that RWJ Barnabas Health has made in Rutgers Health. In addition, RWJ
Barnabas Health will provide $50 million per year in fixed mission support and other payments depending on its
success in the new venture.
Management and governance
Rutgers management team is led by its President Robert Barchi, M.D., Ph.D., who has been instrumental in leading the
university's expansion in the health sciences following the acquisition on July 1, 2013, of medical educational and
teaching programs from the University of Medicine and Dentistry of New Jersey (UMDNJ). Since that time, and
coinciding with the formation of the university's new operating structure, many new administrators and faculty were
recruited and have strengthened Rutgers while at the same time, moving it closer to its goal of gaining broader state
and national recognition for the quality of its programs, faculty, and students. President Barchi announced in 2019 that
he is retiring at the end of the current school year and recently it was announced that Dr. Jonathan Holloway is going
to be Rutgers' 21st president. Dr. Holloway most recently was the provost of Northwestern University since 2017. Last
year Dr. Christopher Molloy became the new chancellor of Rutgers-New Brunswick after having served as interim
chancellor since July 2018. We also understand that in late October of 2018, Dr. Sherine Gabriel resigned her position
as dean of Robert Wood Johnson Medical School (RWJMS) to become the president of Rush University in Chicago
and that Dr. Robert Johnson, dean of New Jersey Medical School, agreed to assume the additional position of interim
dean of RWJMS. As previously indicated Rutgers is studying the need for operating two medical schools and may
combine them into one school pending further analysis and applicable accreditation and regulatory approvals.
In 2014, the university completed a strategic plan for all major operating units. In 2015, it implemented a
responsibility-centered management budget process and in 2016, developed a set of metrics or benchmarks to gauge
the university's performance. In 2017, it launched an ambitious three-phase plan to put all of its operations on one
unified computer platform and it reports the first phase (chart of accounts, general ledger and procurement, and
expense reimbursement systems) has been completed and it is well into the second phase that largely centers around
its human resources and payroll functions. In total, the university estimates it will spend $125 million to realize
implementation of all three phases of the plan. Also, it has an updated physical master plan that is guiding campus
development through 2030.
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
On July 31, 2015, The American Bar Assn. approved the merger of Rutgers' School of Law-Newark and School of
Law-Camden with the new school now known simply as Rutgers Law School. The law school maintains distinct
locations on the Newark and Camden campuses but combines the strength of each faculty and expanded access for its
graduates to two of the five-largest employment markets in the country.
Financial Profile
Financial management policies
Rutgers has formal policies for endowment, investments, and debt. It operates according to a five-year strategic plan
and has a formal reserve liquidity policy. The university meets standard annual disclosure requirements. The financial
policies assessment reflects our opinion that, while there may be some areas of risk, the organization's overall financial
policies should not impair its future ability to pay debt service. Our analysis of financial policies includes a review of
the organization's financial reporting and disclosure, investment allocation and liquidity, debt profile, contingent
liabilities, and legal structure and a comparison of these policies with comparable providers.
Financial performance
Since fiscal 2015, Rutgers has recorded full-accrual-based adjusted operating surpluses except for fiscal 2018 when it
incurred a slight operating deficit of $82.7 million (negative 1.9%); in fiscal 2019 the strongest operating margin in the
past five years was recorded at $70.5 million (1.5%). Rutgers performance on a cash basis is much stronger with better
than break-even financial operations for each of the past five fiscal years. Rutgers' total adjusted UNA plus debt service
reserve decreased 7.0% to $618.7 million in fiscal year 2019 from $665.0 million in 2018. Expenses associated with the
continuing transformation of Rutgers into a major comprehensive and more unified university that is research focused
and expanding in the health sciences depress Rutgers' adjusted UNA in the short term.
Largely due to the acquisition of UMDNJ, Rutgers' total asset base grew to $7.1 billion at fiscal year-end 2019 from
$4.1 billion pre-acquisition as of fiscal year-end 2013. Similarly, based on fiscal year-end 2019 results, Rutgers' total
adjusted operating revenue of $4.6 billion constitutes a significant increase, in our view, from $2.2 billion in fiscal 2013
(pre-acquisition).
Rutgers is on a more solid financial footing for the future, in our view, and we understand fiscal 2020 financial
performance is anticipated to be in line with that of fiscal 2019 in part due to recent increasing financial support from
philanthropy and partners such as RWJ Barnabas Health. In addition, Rutgers continues to improve its information
systems enabling it to make better-informed decisions about finances and resource allocation. We understand the
fiscal 2021 budget is expected to call for slightly better performance than that anticipated for fiscal 2020.
We consider the university's fiscal 2019 revenue diversity good, with gross tuition revenues constituting the largest
sources of revenue at 29%, followed by state appropriations at 23%, grants and contracts at 11%, and health care
operations at 20%. State appropriations and OPEB paid by the State for fiscal years 2018 and 2019 were $1.09 billion
and $1.07 billion, respectively. The university's fiscal year 2019 budget included $887.2 million in appropriation
including $444.7 million of state paid fringe benefit costs.
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
Available resources
Rutgers' adjusted UNA to operations for fiscal year-end 2019 was 13.5% and is somewhat low for a flagship university,
in our view, and below the comparable median ratio for the rating category. Adjusted UNA to debt weakened to 30.2%
in fiscal 2019 from 32.3% in fiscal 2018.
Unrestricted cash and investments totaled $2.1 billion at the close of fiscal 2019 (including the endowment) and
improved to $2.3 billion as of Dec. 31, 2019 (unaudited), in line with the university's pro forma long-term debt of $2.3
billion.
Debt and contingent liabilities
Rutgers' outstanding debt on a pro forma basis, including various minor notes and loans, CP, and capitalized leases, at
fiscal year-end June 30, 2019, is about $2.05 billion compared with its $1.1 billion outstanding debt pre-merger of
UMDNJ related assets and liabilities. Approximately 94% of Rutgers' total debt is fixed-rate debt. Rutgers' $2.1 billion
in unrestricted cash and investments at fiscal year-end 2019 includes almost half of that amount in its long-term
investment pool, which has very good liquidity characteristics as approximately 42.7% of the pool can be liquidated on
a weekly basis, 18.2% monthly, 7.6% semi-annually and 8.1% annually. Therefore, combined with various
supplemental bank liquidity facilities that support Rutgers' CP and variable-rate demand debt, our view is that risk
associated with these types of debt instruments is substantially mitigated. Also, this level of liquidity supports risks
associated with its swap portfolio described further below.
Rutgers has three retirement plans available to its employees, the largest of which is the State of New Jersey Public
Employees Retirement System (PERS) that accounts for the majority of its associated liability and expense. PERS is a
cost-sharing multiple employer defined-benefit pension plan administered by the State of New Jersey, Division of
Pensions and Benefits.
Rutgers' total net pension liability decreased by 2.3% in fiscal 2019 to $1.7 billion (the PERS liability was $1.65 billion)
from $1.8 billion in fiscal 2018, largely owing to changes in plan assumptions administered by New Jersey. Similarly,
Rutgers' total net pension liability decreased by 14% in fiscal 2018 to $1.8 billion from $2.06 billion in fiscal 2017 due
to changes in plan assumptions administered by New Jersey. Our understanding is that New Jersey, as a matter of
practice, supports its public university's pension and OPEB obligations. The annual pension expense for fiscal 2019 for
the PERS plan was $120.8 million.
The university also has two swaps outstanding at fiscal year-end 2019 with a notional amount of $109.4 million. The
marked-to-market value of the swaps as of fiscal year-end 2019 was negative $31.3 million (excluding accrued interest)
and the university was required to post collateral at that time of $11.6 million.
The university often issues CP as an interim funding source for some of its projects and then secures permanent
financing later. Permanent financing may include some combination of philanthropy, state or local government
support, and university funding.
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
Rutgers University, New Jersey Enterprise And Financial Statistics
--Fiscal year ended June 30--
Medians for 'A' rated public
colleges and universities
2020 2019 2018 2017 2016 2018
Enrollment and demand
Headcount 71,011 70,876 69,198 68,942 67,556 MNR
Full-time equivalent 62,491 62,105 60,608 60,345 59,067 12,854
Freshman acceptance rate (%) 76.6 70.7 72.7 66.5 67.1 74.3
Freshman matriculation rate (%) 27.3 28.8 27.8 32.6 32.6 MNR
Undergraduates as a % of total
enrollment (%)
72.1 71.9 71.8 71.6 71.2 83.3
Freshman retention (%) 90.6 91.5 91.6 91.3 91.3 77.3
Graduation rates (six years) (%) 80.6 76.7 76.9 76.7 77.2 MNR
Income statement
Adjusted operating revenue
($000s)
N.A. 4,648,250 4,384,675 3,984,859 3,757,796 MNR
Adjusted operating expense
($000s)
N.A. 4,577,754 4,467,393 3,984,322 3,713,792 MNR
Net adjusted operating income
($000s)
N.A. 70,496 (82,718) 537 44,004 MNR
Net adjusted operating margin (%) N.A. 1.54 (1.85) 0.01 1.18 (1)
Estimated operating gain/loss
before depreciation ($000s)
N.A. 251,833 98,251 185,319 195,258 MNR
Change in unrestricted net assets
(UNA; $000s)
N.A. (95,320) (248,129) (176,459) (62,043) MNR
State operating appropriations
($000s)
N.A. 1,065,506 1,090,541 807,511 775,666 MNR
State appropriations to revenue
(%)
N.A. 22.9 24.9 20.3 20.6 21.0
Student dependence (%) N.A. 33.3 33.6 36.3 38.3 52.4
Health care operations
dependence (%)
N.A. 18.7 17.8 17.8 14.2 MNR
Research dependence (%) N.A. 10.8 11.5 10.6 12.1 MNR
Endowment and investment
income dependence (%)
N.A. 1.0 1.0 0.9 0.6 0.7
Debt
Outstanding debt ($000s) N.A. 2,045,720 2,059,254 1,924,425 1,948,981 169,922
Proposed debt ($000s) N.A. 490,414 N.A. N.A. N.A. MNR
Total pro forma debt ($000s) N.A. 2,318,174 N.A. N.A. N.A. MNR
Pro forma MADS N.A. 210,853 N.A. N.A. N.A. MNR
Current debt service burden (%) N.A. 3.60 3.29 3.78 4.07 MNR
Current MADS burden (%) N.A. 3.91 3.60 3.68 4.26 4.50
Pro forma MADS burden (%) N.A. 4.61 N.A. N.A. N.A. MNR
Financial resource ratios
Endowment market value ($000s) N.A. 1,366,231 1,230,346 1,139,605 999,469 115,187
Related foundation market value
($000s)
N.A. 139,607 153,121 136,308 118,292 138,714
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
Rutgers University, New Jersey Enterprise And Financial Statistics (cont.)
--Fiscal year ended June 30--
Medians for 'A' rated public
colleges and universities
2020 2019 2018 2017 2016 2018
Cash and investments ($000s) N.A. 2,078,929 2,007,183 2,008,250 1,919,204 MNR
UNA ($000s) N.A. (1,159,825) (1,064,505) (816,376) (639,917) MNR
Adjusted UNA ($000s) N.A. 618,745 651,426 812,232 827,990 MNR
Cash and investments to
operations (%)
N.A. 45.4 44.9 50.4 51.7 46.3
Cash and investments to debt (%) N.A. 101.6 97.5 104.4 98.5 100.6
Cash and investments to pro forma
debt (%)
N.A. 89.7 N.A. N.A. N.A. MNR
Adjusted UNA to operations (%) N.A. 13.5 14.6 20.4 22.3 31.3
Adjusted UNA plus debt service
reserve to debt (%)
N.A. 30.2 32.3 42.9 42.9 57.3
Adjusted UNA plus debt service
reserve to pro forma debt (%)
N.A. 26.7 N.A. N.A. N.A. MNR
Average age of plant (years) N.A. 16.6 15.8 14.6 18.0 14.6
N.A.--Not available. MNR--Median not reported. MADS--Maximum annual debt service. Total adjusted operating revenue = unrestricted revenue
less realized and unrealized gains/losses and financial aid. Total adjusted operating expense = unrestricted expense plus financial aid expense.
Net operating margin = 100*(net adjusted operating income/adjusted operating expense). Student dependence = 100*(gross tuition revenue +
auxiliary revenue) / adjusted operating revenue. Current debt service burden = 100*(current debt service expense/adjusted operating expenses).
Current MADS burden = 100*(maximum annual debt service expense/adjusted operating expenses). Cash and investments = cash + short-term
and long-term investments. Adjusted UNA = Unrestricted net assets + unrestricted net assets of the foundation. Average age of plant =
accumulated depreciation/depreciation and amortization expense.
Ratings Detail (As Of February 28, 2020)
Rutgers Univ CP
Short Term Rating A-1 Affirmed
Rutgers Univ CP
Short Term Rating A-1 Affirmed
Rutgers Univ GO bnds (Federally Taxable) ser 2019R dtd 10/31/2019 due 05/01/2043
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_GO
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_GO
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_GO
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_GO
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_GO
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_GO
Long Term Rating A+/Stable Affirmed
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
Ratings Detail (As Of February 28, 2020) (cont.)
Rutgers Univ PCU_USF
Long Term Rating A+/A-1/Stable Affirmed
Rutgers Univ PCU_USF
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_USF
Long Term Rating A+/Stable Affirmed
Rutgers Univ PCU_USF (FGIC) (National)
Unenhanced Rating A+(SPUR)/Stable Affirmed
New Brunswick Hsg Auth, New Jersey
Rutgers Univ, New Jersey
New Brunswick Hsg Auth (Rutgers Univ) PCU_USF
Long Term Rating A+/Stable Affirmed
New Jersey Econ Dev Auth, New Jersey
Rutgers Univ, New Jersey
New Jersey Econ Dev Auth (Rutgers Univ) PCU_USF
Long Term Rating A+/Stable Affirmed
Many issues are enhanced by bond insurance.
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Rutgers University, New Jersey; CP; Private Coll/Univ - General Obligation; Public Coll/Univ - Unlimited StudentFees
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