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Moody's Improved Ratings
on Penn's and UPHS's Bonds

Moody's Investors Service recently revised the outlooks to stable from negative on bond ratings for Penn and UPHS. Their report affirmed the A1 rating on the University's bonds and the A3 rating on the Health Services bonds. The University of Pennsylvania Health Services has approximately $825 million of outstanding debt, of which $480 million is rated A3; a large portion of the remaining debt is variable rate and supported by bank letters of credit. In addition to the Health Services debt, the University has approximately $560 million of outstanding debt, of which $340 million is rated A1. $1.4 billion of total debt is affected by this rating.

The rating revision for both Penn and UPHS reflects "substantial progress at the Health Services operations in producing an operating profit, reversing a history of large operating losses, stabilizing liquidity and implementing more consistent financial practices and more stringent financial controls. Despite notable improvement, we believe a rating upgrade is precluded at this time based on challenges the health system continues to face including a modest cash position, short-term cash requirements above normal debt service and capital spending, and wage and other expense pressures," Moody's report said.

The A3 rating for Health Services also incorporates "the strength of the University's commitment to and close relationship with the health system and the financial resources of the School of Medicine, although neither the University nor the School of Medicine is legally obligated for the Health System's debt."

Almanac, Vol. 48, No. 15, December 11, 2001


December 11, 2001
Volume 48 Number 15

More SAS endowed chairs: Dr. Randall Wright, is appointed to the Ronald Lauder Endowed Term Chair, and Dr. Richard Schultz is the Patricia Williams Term Chair.

Provost Robert Barchi and Executive Vice President John Fry will be part of an Open Form for the University's Strategic Plan on January 15.

Dr. Helen O. Dickens, a pioneer in women's health has died at the age of 92.
UPHS Bond rate has been revised to stable by Moody's Investors Service
Ben Financials begins its countdown to launching of new services on January 2.

Women of Color Scholars Awards applications are due on January 21

Penn Press has a collection of books just right for the holiday gift giving season. If you prefer there are Gifts of Involvement or ideas in the neighborhood from the Holiday Shopping Guide.
During the holidays, there are simple Safety Tips to keep in mind while you work and shop.
As always volunteer opportunities abound available throughout the community.
Researchers receive $1.26 million to study microfluidic systems; Penn has received $2.84 million to improve reliability of computers; the Center on Adult Literacy has received $2.4 million for technology; are part of Research Roundup in this issue.