The rating applies to the system's $161.3 million for series 2001B bonds and $88.3 million in series 2001C bonds. The New York City-based rating firm also affirmed the AAA rating on the UT system's outstanding parity obligation bonds of $971.6 million of bonds and $179 of commercial paper previously issued through UT's revenue financing system debt program.
Money from the series 2001 B offering will refund $116 million of outstanding RFS commercial paper, provide money for $45 million for capital projects and pay costs associated with the issuance. The series 2001C offering will go toward $88 million of capital project authorized by the Texas Legislature. The bonds are expected to sell in early September.
In a prepared statement, Fitch said the rating is supported by the system's strong balance sheet, positive operating performance, manageable debt burden and growing enrollment.The UT system board of regents meeting last week in Arlington approved a $3.4-billion, six-year capital improvement program. The program consists of 154 projects with $2.8 million in new construction and $577 million in rehabilitation and repair projects.
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