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February 20, 1997

Pitt's bond rating improves

Two bond agencies have raised credit ratings for Pitt.

Moody's Investor Service has given the University an "A1" rating, while Standard and Poor's Corp. has assigned Pitt an "AA" rating. Since 1992, both had listed Pitt's rating as "A." The higher rating means Pitt can borrow money at lower interest rates.

The agencies based their ratings on Pitt's strengthened financial condition, citing a diversity of revenue streams (state appropriations, governoment research funding, tuition and fees, and endowment income), stabilized enrollment, increasing student quality, a growing endowment, a conservative internal spending policy, a moderate debt burden, and strategic initiatives undertaken by the current administration.

This month Pitt is issuing $65 million in municipal bonds to finance projects aimed mainly at enhancing student life and preserving existing facilities. Projects include renovating the Masonic Temple for academic and administrative use, renovations to Cost Sports Center and some athletic fields, and reimbursement of funds used for the School of Health and Rehabilitation Sciences building.

Investors interested in getting an official statement for the bonds can call PNC Capital Markets at 1-800-PNC-6111, Mellon Financial Markets, Inc., at 1-800-441-9432 or the Wall Street firm of Lehman Brothers at 1-800-344-7203.

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