Moody's revises Louisiana Tech University's (LA) outlook to stable

[Blue Dawg]

https://www.moodys.com/research/Mood...gns--PR_341021

I have no idea what any of this means, but it popped up on my feed reader and may be of interest to some.

[TechAlum05]

https://www.moodys.com/research/Mood...gns--PR_341021

I have no idea what any of this means, but it popped up on my feed reader and may be of interest to some.

In a nutshell, this is good news.

1. Moody's assigned an A3 rating to the planned $45 million in debt that will be issued for the South Housing project coming up next year. The A3 rating from Moody's means that the debt is "investment grade" (which is good) and that the university has a "STRONG capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories."

2. Moody's adjusts the outlook on Tech's debt from negative to stable due to improved performance as well as growth in enrollment and net revenue. Basically, Tech has more of an ability to pay off its debt on time due to getting more money for the increased student population. Moody's expects the university to continue growing its student enrollment, improve its operations, and increase its market strength (attracting better students, being the best engineering & science college in the UL System, etc.).

https://en.wikipedia.org/wiki/Bond_credit_rating

[Blue Dawg]

Excellent.

[RhinoDawg]

In a nutshell, this is good news for Tech because, all other things being equal, it will be able to borrow money at a lower rate. It is "bad" news for persons wanting to "invest" in Tech by buying bonds Tech will issue in the future because, all other things being equal, they will receive a lower yield on those bonds.

[ChipDog]

In a nutshell, this is good news for Tech because, all other things being equal, it will be able to borrow money at a lower rate. It is "bad" news for persons wanting to "invest" in Tech by buying bonds Tech will issue in the future because, all other things being equal, they will receive a lower yield on those bonds.

How could one invest in Louisiana Tech bonds directly?

[RhinoDawg]

How could one invest in Louisiana Tech bonds directly?

Once issued retail resellers, like Edward Jones, may be able to make some available in our inventory as long as they haven't all been bought by institutional investors (pension plans, insurance companies, etc.)

[sportdawg]

Once issued retail resellers, like Edward Jones, may be able to make some available in our inventory as long as they haven't all been bought by institutional investors (pension plans, insurance companies, etc.)

or MetLife