S&P downgrades debt for building on UNC campus

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Associated Press

Posted on August 10, 2011 at 2:05 AM

CHAPEL HILL, N.C. (AP) — Standard & Poor's has lowered its rating for bonds issued by the UNC system 20 years ago to construct a building leased by the federal government on the Chapel Hill campus.

S&P credit analyst John Kenward said the downgrade from AAA to AA+ is limited to $37 million in bonds issued by the university in 1991 for a laboratory facility leased by the U.S. Environmental Protection Agency.

Kenward said the UNC bond downgrade is a direct result of the company's downgrade on Friday of U.S. government bonds. He said the move does not reflect negatively on the creditworthiness of any other bonds issued by the UNC system.

The series of UNC bonds affected by the downgrade are set to mature in 2015, with about $14 million in debt still outstanding.

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