Weekly Market Update
RUTGERS AND RWJBARNABAS FINALIZE PARTNERSHIP
Thursday, July 26, 2018
Rutgers University and RWJBarnabas Health signed an agreement to launch their public-private partnership. The partnership, which was announced last year, will create the largest academic health system in New Jersey. As part of the arrangement, RWJBarnabas will oversee clinical services, while Rutgers will manage academics and research. Rutgers' medical students and faculty members will train and research at RWJBarnabas hospitals and facilities. RWJBarnabas has committed to invest $100 million up front and an additional $1 billion over the next 20 years. Part of the money will be used to hire 100 new researchers, which Rutgers expects will double its research funding from the federal government. Additionally, RWJBarnabas will fund a new Rutgers Cancer Institute of New Jersey facility.
In Other News
- Art and design schools are outperforming other colleges, experiencing a 4% decline in enrollment over the last decade in contrast to a 6% decline overall in higher education. Art schools attribute their success to higher graduate employment rates .
- House Democrats introduced the 'Aim Higher Act' to make college more affordable and increase graduation rates. The bill proposes to increase Pell Grants, expand college loan forgiveness to more professions, and provide funding for programs helping at-risk youth. The included spending mandate leaves the bill with little chance of passage.
- The University of Pennsylvania has partnered with online learning platform Coursera to offer an online master's degree in Computer and Information Technology. The program's cost of attendance will be approximately one third of the on-campus version.
- San Diego State University and the City of San Diego are planning to amend the lease of the school's football stadium. Under the new proposal, the university will pay a flat fee of $1.1 million per year, up from a ticket surcharge totaling just $154,000 last year.
- Maine Medical Center and Tufts University are renewing their 10-year medical education partnership, Maine Track, until 2029. The program has increased the number of graduates who choose to practice medicine in Maine and has provided increased clinical exposure.
- Norwich University is the latest of several schools to offer an alternative payment method to students through an income share agreement. As a replacement for federal loans, students will have the option to pay a percentage of their salary for a set period of time after graduating.
Rating Agency Update
- Moody's assigned Baa1 to California Lutheran University's Series 2018 Revenue Bonds. The outlook is stable.
- Moody's affirmed Minneapolis College of Art and Design's Baa2 rating. The outlook is stable.
- Moody's assigned Aa1 to University of Nebraska Facilities Corporation's Series 2018 Facilities Bonds. The outlook is stable.
- S&P assigned AA to University of Nebraska Facilities Corporation's Series 2018 Facilities Bonds. The outlook is stable.
- Moody's downgraded Susquehanna University's rating to A3 from A2. The outlook was revised from negative to stable.
- Moody's assigned Aa2 to Michigan State University's Series 2018 A, B, C & D General Revenue Bonds. The outlook is negative.
- Moody's assigned Baa1 to Art Center College of Design's Series 2018A Refunding Revenue Bonds. The outlook is stable.
- Moody's affirmed John Carroll University's A3 rating. The outlook was revised from negative to stable.
- S&P affirmed Northern Arizona University's A+ rating. The outlook is stable.
- S&P affirmed Bryn Mawr College's AA rating. The outlook was revised from stable to positive.
- S&P affirmed Notre Dame of Maryland University's BBB rating. The outlook was revised from stable to negative.
- S&P downgraded University of Montevallo's rating to A from A+. The outlook is stable.
- S&P assigned BB to Medaille College's Series 2018 Revenue Bonds. The outlook is stable.
- S&P affirmed Cleveland State University's A+ rating. The outlook is stable.
- S&P affirmed Eastern University's BB+ rating. The outlook is negative.