Moody’s assigns CLC its highest-quality bond rating

Bonds issued as part of a plan to finance the cost of building the College of Lake County’s Sustainable Campus Master Plan will carry the Aaa (“Triple A”) bond rating—the highest quality rating offered by Moody’s Investors Service.

CLC first received the Aaa rating in January 2012. Word affirming the continuation of the Aaa rating came on Aug. 20 in a statement issued by Moody’s in connection with the college’s announced sale of $28.8 million in General Obligation Bonds (Alternative Revenue Source), Series 2012 A and $27.2 million in Local Government Program Revenue Bonds, Series 2013B Bonds. The bond sale is part of a plan to finance the $148 million cost of a Sustainable Campus Master Plan approved by the board of trustees in November 2012.

“Our continued Aaa rating is great news for the college and our tax payers,” said Board Chairman Amanda Howland. “Keeping this rating will save the college millions of dollars on the cost of making campus improvements that are essential to maintaining a high-level of educational quality in our programs and services. In a time when Moody’s is downgrading the bond rating of several Illinois institutions, we’re gratified by Moody’s confidence in our fiscal management.”

The Sustainable Campus Master Plan includes improvements at all three CLC campuses. Components on the Grayslake campus include repairs to the aging heating and air conditioning system, renovation of the B and C Wings to create a student services center, a new science building, classroom technology upgrades and a geothermal plant and loop to save on energy costs. Work at the Lakeshore Campus in Waukegan will include a major new building and renovations of existing space. At the Southlake Campus in Vernon Hills, a new chemistry classroom will be added.

Financing of the plan will consist of the upcoming bond sale, an earlier bond sale, state funding and college reserves, according to David Agazzi, vice president for administrative affairs. Agazzi estimated that Moody’s Aaa rating will save “at least $2 million” on debt costs for the bonded portion of the plan.

In affirming the Aaa rating, Moody’s cited several reasons, including the college’s healthy fund reserve levels, the college’s conservative financial management team and its strong internal controls.

Construction of the master plan is scheduled to begin with the science building on the Grayslake campus in January 2014. Completion of construction on all components is scheduled for October 2017, Agazzi said.

Details of the master plan components and schedule are at www.clcillinois.edu/masterplan.