Investor Relations & Continuing Disclosure

Learn about the university's credit ratings, read our annual update to bondholders, view our quarterly reports and learn answers to frequently asked questions.

Credit Ratings and Reports

The table below provides the most recent credit report for the credit ratings that have been assigned by the three major credit rating agencies:   Fitch Ratings, Moody’s Investors Service, and Standard & Poor’s Rating Services, exclusive of any credit enhancement that may be attached to a particular bond issue, along with the most recent credit report by each of those three agencies.

The ratings and ratings outlooks in effect from time to time reflect only the views of the particular rating organization.  The explanation of its views of the meaning and significance of its rating or outlook may be obtained from the respective rating agency. The University furnished to each rating agency certain information and materials, some of which may not be included in the Official Statement, relating to the Bonds and other obligations, the state and the Commission.  Generally, rating agencies base their ratings on that information and materials, and on their own investigations, studies and assumptions.

There can be no assurance that the ratings or outlooks assigned will continue for any given time, or that a rating will not be lowered or withdrawn by a rating agency if in its judgment circumstances so warrant.  Any downward change in or withdrawal of a rating, or change in rating outlook or other actions of a rating agency, may have an adverse effect on the marketability and market price of the Bonds.

 

Fitch 

Moody’s

Standard & Poor’s

General Receipts – Long Term Rating

AA

Aa1

AA

General Receipts – Short Term Rating

F-1+

VMIG-1

A-1+

Special Purpose General Receipts

N/A

Aa2

AA-

 

 

Frequently Asked Questions

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What are some of the key features of municipal bonds?

  • Interest Rate - The issuer pays interest to bond investors in exchange for the use of the loaned money. The interest rate is a percentage of the principal (the amount borrowed/invested), accruing over a specified period (typically, semiannually). Interest rates vary depending on the term and prevailing bond market conditions and may be fixed or variable. Fixed interest rates are set on the pricing date.

  • Price - The price is the amount investors are willing to pay for a bond initially or in the secondary market. Price is based on certain variables, including current market yields, supply and demand, credit quality, term to maturity, and tax status. Price and yield move in opposite directions. When market yields increase, the price or value of a bond decreases, and vice versa.

  • Yield - The yield refers to the rate of return an investor earns on the bond based on the price and interest rate. Yield can be calculated in different ways to reflect differing assumptions and investors should consult their brokers or financial advisors to learn more about yield.

  • Maturity Date - Maturity date refers to the date when the principal on the bond is scheduled to be repaid to the investor.

  • Redemption Provisions - Some bonds contain provisions that allow the issuer to redeem or "call" all or a portion of the bonds or notes, at specified prices, prior to their stated maturity date. 

  • Ratings/Credit - A credit rating is an evaluation of an issuer's credit quality based primarily on its current and projected financial and economic conditions.  A credit rating is an independent assessment of the creditworthiness of the bonds.  It measures the probability of timely repayment of principal and interest of a bond or note.  Higher credit ratings indicate the rating agency’s view that there is a greater probability the investment will be repaid. Most bonds are rated by one or more of the three major rating agencies: Standard & Poor’s, Moody’s Investor's Service, and/or Fitch Ratings. Investors are advised to obtain and review the credit reports associated with a bond offering prior to making an investment decision.

  • Denominations - fixed interest rate bonds are typically sold in a minimum denomination of $5,000 and whole multiples thereof.

  • Debt service - refers to the payment of principal and interest on outstanding bonds.

 

What does it mean when a bond is "tax-exempt"?

Tax-exempt means that the interest paid on the bond is exempt from federal income taxes and from Ohio personal income taxes. Not all university bonds are "tax-exempt".

For additional information about the tax status of specific bonds, read the "Tax Matters" section of the official statement for those bonds.

 

What does it mean when a bond is "taxable"?

Taxable means that the interest you earn on the security is not exempt from federal income taxes and may or may not be exempt from state personal income taxes. For additional information about the tax status of specific bonds, read the "Tax Matters" section of the official statement for those bonds.
 

What is a refunding bond?

A refunding bond is a bond issued to retire existing bonds, typically done to achieve cost savings by replacing existing higher interest bonds with new lower interest bonds.

What is a preliminary official statement (POS)?

The POS is an informational disclosure document released prior to the sale that describes the proposed new issue of bonds prior to final determination of the maturity amounts, interest rates and offering prices/yields. The POS contains preliminary information on the terms and conditions of the bond sale including the purpose, security features, and discloses economic, financial and legal information applicable to the issue. The POS should be used by potential investors to evaluate the structure and credit quality of the transaction.

 

What is the official statement (OS)?

An OS is an informational disclosure document released after the pricing of the bonds and includes all of the information contained in the POS (including any needed updates) in addition to the final maturity amounts, interest rates, and offering prices/yields.

 

What is the pricing date?

The pricing date is the day the interest rate, yield, and price for each maturity of a bond issue are established. The pricing period length can range from hours to multiple days depending on the circumstance.

 

What is the retail order period?

The retail order period gives retail investors an opportunity to place orders on a first priority basis.

 

What is the difference between buying a bond in the "primary" market versus the "secondary market"?

New bond issues are sold in the primary market. In a new issue, most of the terms are set, including the initial price and interest rate, and the bonds are sold to investors, with the issuer receiving the proceeds of the sale.

A secondary market transaction does not involve the issuer, but is a transaction between two investors - a buyer and a seller. Secondary market transactions involve a brokerage firm which acts either as an intermediary between the buyer and seller, or as a buyer or seller itself. Market conditions, such as prevailing interest rates, supply and demand, and credit quality, among other variables, determine the price, which may differ from the original price.

 

What are some risks involved in investing in municipal securities?

Credit Risk - Risk that the issuer is not able to pay the scheduled principal and interest on a full and timely basis. A change in the credit rating on bonds after they are issued can affect their value.

Interest Rate Risk - Interest rate risk is the risk that changes in market interest rates may increase or decrease the market value of a bond. When interest rates decrease, the price of fixed-rate bonds and notes increases, and when interest rates increase, the price of fixed-rate bonds and notes decreases.

For a more thorough discussion of the risks associated with a particular municipal security, potential investors should read the associated official statement and consult a licensed financial professional.

 

What if I want to sell my municipal security prior to maturity?

Municipal securities may be sold prior to maturity with the assistance of a brokerage firm. If an investor sells a municipal security prior to maturity, he or she may receive more or less than the original price depending on prevailing market interest rates, supply and demand, and perceived credit quality of the bond or note, among other variables. In addition, the investor should consult a tax advisor for any tax implications.

 

What are variable rate demand obligations?

Variable-rate demand obligations (VRDOs) are debt securities that bear interest at a floating, or variable, rate adjusted at specified intervals (daily, weekly, or monthly) according to a specific index or through a remarketing process. Holders can redeem these securities at designated times. VRDOs are short-term, tax-exempt instruments whose yield is reset daily or weekly based on an index of short-term municipal rates.