University of North Texas System, TX Surveillance Report

Rating Summary

The long-term rating continues to reflect the University of North Texas System’s (“UNTS’” or the “System’s”) solid financial profile, characterized by generally stable operating performance, diverse revenues, and sound liquidity; and historically healthy student demand, supported by the System’s diverse program offerings and location in a growing region of the US. Ongoing support from the State of Texas (“the State”) in the form of annual appropriations for operations, debt service and capital projects provides additional support for the rating. Counterbalancing the aforementioned strengths is the capital-intensive nature of System operations, which will continue to require the periodic issuance of debt, and some recent weakening in professional, graduate and international student demand which prompted a System-wide rationalization of programs…