Kansas City Kansas Community College #AA-# COP Rating Off Watch On Receipt Of Timely Information

Stocks and Financial Services Press Releases Tuesday November 14, 2017 08:37
CENTENNIAL--14 Nov--S&P Global Ratings

CENTENNIAL (S&P Global Ratings) Nov. 13, 2017--S&P Global Ratings affirmed its 'AA-' long-term rating on Kansas City Kansas Community College's lease-purchase agreement certificates of participation (COPs) outstanding. At the same time, we removed the rating from CreditWatch with negative implications, where it had been placed on Sept. 8, 2017. The outlook is stable.

"We removed the rating from CreditWatch because we have received timely information of satisfactory quality to maintain the rating," said S&P Global Ratings credit analyst Thomas Zemetis.

Annual base rental payments, not subject to annual appropriation by the college, secure the college's existing COPs and make up a special obligation of the college. Officials will make annual rental payments from all revenue of the college, including, if necessary, revenue from ad valorem taxes. Therefore, we rate the COPs as a general-obligation (GO) equivalent.

"The rating reflects our opinion of the community college district's access to the Kansas City metropolitan statistical area's (MSA) deep and diverse economy and historically strong financial position, supporting maintenance of very strong reserves," said Mr. Zemetis, "as well as its rapid amortization of direct debt in the next 10 years, coupled with limited capital needs."

Kansas City Kansas Community College, an accredited public two-year community college, is in Wyandotte County in eastern Kansas. It encompasses a two-county service area, which serves an estimated population of 163,283. Its main campus is in Kansas City, and the college also operates one branch location in Leavenworth. The college's taxing jurisdiction is coterminous with the boundaries of Wyandotte County. It offers two-year associate degree and one-year certificate programs. Overall, the college's full-time equivalent (FTE) enrollment decreased by a cumulative 26.8% to 3,619 students in the 2015-2016 academic year from 4,946 in 2010-2011 academic year.

"The stable outlook reflects our view that the college will likely sustain a strong overall financial position that supports its already very strong reserves," added Mr. Zemetis. It also reflects our opinion that the college maintains sufficient tax and tuition-raising flexibility to address future capital needs or any potential unexpected reductions in revenue. The outlook further reflects our view that the college's growing tax base and access to the broad and diverse Kansas City MSA economy has historically provided employment stability, despite low-to-adequate wealth and income levels. For these reasons, we do not expect to change the rating within our two-year outlook period.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on the S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.


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