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Tuesday, April 22, 2014

Four Law Schools' Debt Classified as 'Junk Bonds'

Following up on yesterday's post, Moody's Downgrades Vermont Law School's Bonds to Junk Status:  National Law Journal, Independent Law Schools Suffer Credit-Ratings Slips:

Vermont was the latest stand-alone law school to take a hit from a credit-rating service; in December, Standard & Poor’s concluded that they are especially vulnerable.  “Credit quality has been deteriorating for stand-alone law schools, which are more susceptible to credit deterioration than law schools that are nested within comprehensive universities,” the service said. ... Of the five stand-alone law schools Standard & Poor’s looked at—Albany Law School [BBB], Brooklyn Law School [BBB+], New York Law School [A-]; Thomas M. Cooley Law School [BBB] and Thomas Jefferson School of Law [B+]—it deemed only Albany’s credit outlook stable. ... Moreover, in November Moody’s affirmed the Baa1 rating on Southwestern Law School’s $28.6 million in outstanding bonds. ... Moody’s affirmed Brooklyn Law School’s Baa1 rating in August, giving it a stable outlook.

http://taxprof.typepad.com/taxprof_blog/2014/04/debt-of-at-least.html

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