New York University's 2019A, B-1, B-2 Bonds Rated 'AA-'; Outlook Stable

NEW YORK (S&P Global Ratings) Feb. 5, 2019--S&P Global Ratings assigned its 
'AA-' long-term rating to the Dormitory Authority of the State of New York's 
(DASNY) series 2019A tax-exempt revenue bonds and series 2019B-1 and 2019B-2 
taxable revenue bonds, issued for New York University (NYU or the university). 
At the same time, we affirmed our 'AA-' issuer credit rating (ICR) on NYU and 
the long-term rating on the university's existing bonds issued by DASNY and 
the university's directly issued series 2009, series 2010, and series 2015 
bonds. The outlook on all ratings is stable. 

"The rating reflects NYU's extremely strong enterprise profile, supported by 
healthy demand metrics that have improved considerably in fall 2018, a large 
and diverse student body with increasing international enrollment that 
provides sound net tuition revenue growth, and a solid management team that is 
focused on growing and transforming the overall enterprise," said S&P Global 
Ratings credit analyst Charlene Butterfield. "The rating further reflects the 
university's strong financial profile, supported by sufficient operating 
performance and conservative debt structure, offset by very weak available 
resources that continue to lag peers in the same rating category." 

The stable outlook reflects our expectation that over the next two years, 
NYU's balance sheet metrics will continue to improve incrementally upon 
healthy fundraising. We expect continued break-even to positive operating 
performance at the academic component on a cash basis for fiscal years 2019 
and 2020. We expect demand will remain robust and enrollment at least stable.
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