This story was originally posted on IdahoEdNews.org on Feb. 19, 2024.
The $685 million University of Phoenix purchase could trigger a “multi-notch downgrade” in the University of Idaho’s bond rating, according to a newly issued report.
A downgrade could affect $130 million in existing U of I debt, according to an analysis from Moody’s Investors Service, a firm that issues credit ratings on public entities and private corporations worldwide.
U of I officials have long acknowledged that the Phoenix purchase could cause a downgrade. But they have also downplayed the risk, saying the university would be on the hook for no more than $10 million a year for bond payments. Four Three Education — a U of I-affiliated nonprofit — would finance the purchase, and university officials expect Four Three to comfortably cover bond payments.
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But Moody’s is skeptical.
In its report, issued Wednesday, Moody’s voices uncertainty about Four Three, and says the purchase still represents “a substantial increase of U of I’s total debt and leverage profile.” The report also refers, obliquely, to Phoenix’s “various legal and regulatory liabilities.” Consequently, purchasing the for-profit online university could expose the U of I to “potential future legal action” from the U.S. Department of Education.
The U of I currently has an A1 bond rating — a low risk, according to Moody’s rankings. Moddy’s had considered the U of I’s rating “stable,” before putting the rating under review last week.
And the review puts the U of I in a financial fog.
“We don’t have nearly enough detail to know where this could land,” Emily Raimes, a Moody’s associate managing director, told The Bond Buyer, a publication focused on municipal finance. “We just wanted to signal that (a downgrade) could be more than one notch. We try to be transparent, and if it’s capped at one notch, we would say that.”
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In a statement, the U of I said it would not address the specifics of the report until Moody’s “has a full understanding of this transaction.”
“University of Idaho has been expecting a reevaluation of our rating based (on) our desire to affiliate with University of Phoenix,” the U of I said in its statement. “It is unfortunate that Moody’s news release relies on false assumptions founded in uninformed public statements and incorrect media reports.”
Financing is one of several obstacles facing the U of I and Phoenix, as they hope to close the sale within the next few months.
An Idaho House committee introduced a resolution Thursday urging the State Board of Education to reconsider its support of the Phoenix purchase — threatening a possible lawsuit. And Attorney General Raúl Labrador has threatened to appeal a recent Ada County District Court ruling, which said the State Board’s closed-door discussions of the Phoenix purchase were legal.
More reading: Click here for our in-depth and up-to-the-minute Phoenix coverage.
GARDEN CITY – A Boise-area girl is competing in the 2026 Junior Ranger Competition, and she needs your vote to advance.
Eleven-year-old Cali Lindsay of Garden City is currently in the top 10 in her age group. The first place contestant in each group will advance to the semi-finals, which will wrap on July 17.
The final round concludes on July 24. The winner will be awarded $20,000 and be featured on the cover of Ranger Rick Magazine. They’ll also win a trip with Jeff Corwin.
Cali’s mom, Emily Edginton, tells EastIdahoNews.com how the competition works.
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“You’re allowed one free vote every 24 hours. People can also pay (to vote),” Edginton says. “The contestants have challenges every week to learn about animals and share what they’ve learned. People vote for the answer they like best. If you have enough votes, you move to the next round.”
Cali needs to secure enough votes by Thursday in order to advance to the next round.
The competition is a fundraiser for the National Wildlife Federation, the largest private, nonprofit conservation education and advocacy organization in the United States.
Edginton says they recently moved to Idaho from San Bernardino, California. Her daughter acquired a love of wildlife living in Lytle Creek, a community near the San Gabriel Mountains and San Bernardino National Forest.
“She’s already like a junior ranger. We picked up trash (in the forest) for fun,” Edginton says. “We try to keep it clean because we get a lot of visitors up there in the summertime and they trash the place. It affects the animals.”
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Edginton says they moved to Idaho in February to be closer to family.
She’s grateful her daughter can be part of what she feels is a great cause, and hopes to see her advance, and even win the tournament.
“It’s a good cause, plus it’s a learning experience,” says Edginton.
To vote for Cali or learn more, click here.
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JACKSON, Wyo. — Springtime conjures images of adorable baby animals. Unfortunately, sometimes well-meaning humans feel compelled to interfere with Mother Nature by “rescuing” baby animals who appear to be alone.
The Idaho Department of Fish and Game (IDFG) issued a spring reminder discouraging people from intervening when they assume a wild animal is lost, abandoned or orphaned.
“While these folks typically mean well, the sad reality is they are often doing more damage than good when they intervene — and typically, mom was not far away to begin with,” IDFG shared in a press release.
“Here’s the hard truth,” the agency wrote. “Animal parents will periodically leave their young for an extended period of time for a myriad of reasons, whether it’s to search for food, to rest or to divert attention from their vulnerable offspring, especially if they sense danger. When it comes to wildlife babies, wildlife mothers know best.”
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In short, in an encounter with a lone duckling, gosling, deer fawn, baby bird, red dog or moose calf, do not disturb it. Instead, contact the state’s wildlife agency to report it. In Jackson, call the Wyoming Game and Fish Department at (307) 733-2321. In Idaho, reach IDFG at (208) 525-7290.
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