Valencia, CALIF. (Aug. 19, 2021) - Moody’s Investor Service, a credit rating agency responsible for setting the market standard for bond evaluations, has assigned California Institute of the Arts (CalArts) a first-time issuer rating of Baa1 and to its inaugural Revenue Bond Series 2021.
“We are proud that Moody’s has affirmed CalArts through a strong inaugural credit rating. Their recognition of our powerful brand in arts education, as well as our history of sound financial management helps others know these things as strengths of the Institute,” said Tim Disney, CalArts Board of Trustees Chair. “They also pointed to our strong global and national enrollment draw and CalArts’ industry leading reputation because of our focus on innovation — a standard CalArts has set since its founding 50 years ago.”
Bond proceeds will be used for capital expenditures, to refinance a line of credit, and to cover the cost of issuance.
“Issuing bonds is a new and important debt strategy for the Institute. With Moody’s affirmation of CalArts financial strength and confidence in our new comprehensive debt policy, we can take advantage of historically low interest rates,” said Jim Lovelace, CalArts Board of Trustees Finance Committee Chair. “We are ready to move forward with significant improvements to our facilities and critical property acquisitions as envisioned in our new strategic framework.”
Moody’s rating is explained in depth in their Aug. 18 media release.
California Institute of the Arts (CalArts) has set the pace for educating professional artists since 1970. Offering rigorous undergraduate and graduate degree programs through six schools—Art, Critical Studies, Dance, Film/Video, Music, and Theater—CalArts has championed creative excellence, critical reflection, and the development of new forms and expressions. As successive generations of faculty and alumni have helped shape the landscape of contemporary arts, the Institute first envisioned by Walt Disney encompasses a vibrant, eclectic community with global reach, inviting experimentation, independent inquiry, and active collaboration and exchange among artists, artistic disciplines and cultural traditions.