MEDIA CONTACT: Charles Loebbaka at 847-491-4887 or c-loebbaka@northwestern.edu

July 6, 2005

Northwestern Gets Moody's Highest Grade

The University has received a P-1 rating from Moody’s Investor Service for its short-term debt.

The P-1 rating is the highest grade of credit quality by Moody’s, which said it “believes that Northwestern University’s positive operating performance will continue to provide strong credit support and bond holder security.”

The University is adding to its capacity to issue short-term debt instruments to assist in paying for current expenditures and for temporary cash needs for long-term capital projects at lower interest rates.

This expands its ability to issue taxable commercial paper, as well as its ability to draw upon bank-provided liquidity instruments. 

The University has $100 million of authorized and outstanding taxable commercial paper and is now increasing the authorization to $200 million.

Moody’s also affirmed the Aa1 long-term rating on the University’s $360.2 million in revenue bonds issued through the Illinois Educational Facilities Authority in 1993, 1997 and 2003 and the Aal/VMIG1 rating on $135.8 million in revenue bonds issued through the Illinois Finance Authority in 2004.