Standard & Poor’s assigns AA+ credit rating to NCAA
|Standard & Poor’s, a prominent credit-rating agency, has assigned a AA+ long-term rating to the Indiana Finance Authority’s series 2012 refunding revenue bonds, issued for the NCAA.
Standard & Poor’s also affirmed the AA+ rating on the outstanding 2005 and 2010 bonds.
“The rating reflects the organization’s significant financial resources, its dominant market position in college sports and the strength of its various broadcast contracts,” said a rationale accompanying Standard & Poor’s notice of the AA+ rating.
More specifically, the notification said the rating reflects:
The AA+ rating enhances the NCAA’s ability to borrow money at a lower tax-exempt rate should the need arise, although no additional debt is planned.
Most of the Association’s current debt relates to the acquisition of the National Invitation Tournament and the construction of a recently opened expansion to the national office. The 2005 series refinancing is projected to result in about $1.0 million in net present value savings for the Association.