Idaho
Phoenix fallout? Moody's places University of Idaho's bond rating under review – Idaho Capital Sun
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.
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.”
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.
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Idaho
Idaho leaders mourn the sudden passing of Senator Lindsey Graham
BOISE, Idaho (CBS2) — U.S. Sen. Mike Crapo and U.S. Sen. Jim Risch issued statements mourning the sudden passing of U.S. Sen. Lindsey Graham of South Carolina, remembering him as a friend, colleague and influential conservative lawmaker.
“For most of my public service in Congress, I had the privilege of calling Lindsey Graham not only a colleague in both the House and Senate, but a loyal and generous friend,” Crapo said. “He was a formidable public servant who held the line on issues important to him and South Carolinians with unwavering courage.”
Crapo highlighted Graham’s military service and foreign policy work, saying, “As an Air Force veteran and foreign policy hawk, he traveled the world demonstrating America’s strength and resolve. To our nation’s allies, he was a friend. To our adversaries, he was unflinching.”
Crapo also pointed to Graham’s work in the Senate, including his leadership on budget issues and his role on the Senate Judiciary Committee. “Lindsey was a staunch conservative, and he shepherded the Senate Budget Committee through the critical steps of the budget reconciliation process,” Crapo said. “His work put more money in Americans’ pockets and kept our homeland safe. On the Senate Judiciary Committee, he safeguarded the federal judiciary and conducted much-needed oversight.”
“Senator Graham enriched the lives of those of us who knew him,” Crapo said. “He will be deeply missed, and I offer my sincere condolences to his family, staff and other loved ones during this difficult time.”
Risch and his wife, Vicki, also expressed condolences, calling Graham “a dear friend and colleague whose warmth, humor, and unwavering dedication to public service will be deeply missed.”
“He loved America deeply and devoted his life to serving our nation and fighting for what he believed was in its best interest,” Risch said. “We extend our deepest condolences and are praying for his family during this difficult time.”
Idaho
Idaho’s Most Unusual Listing: A Pair of Medieval Castles Complete With a Dungeon and Drawbridge
Idaho is not a place that’s often associated with Medieval castles, but a pair have just hit the market for $6.25 million.
The imposing stone structures have towers, turrets, ramparts, arrow-slit windows and even a drawbridge, and might just be the most authentic-looking castles this side of the Atlantic.
“Who expects to see a castle like this in Idaho?” said listing agent Brenda Burk of Coldwell Banker Schneidmiller Realty, who brought the property to the market last week. They are, she said, “extremely unusual.”
MORE: Late PBS Anchor Jim Lehrer’s Historic Washington, D.C., Home Lists for $5 Million
Schweitzer Castle and Château de Melusine, as they’re known, stand within Schweitzer Mountain Resort in the Selkirk Mountains and overlook the nearby mountain resort town of Sandpoint. They take in panoramic views of Lake Pend Oreille, Idaho’s largest lake.
The pair of ski-in/ski-out homes each have three bedrooms, two bathrooms and three stories, Burk explained. They are “so authentic,” she said. “Every single stone was handlaid.”
Schweitzer Castle, she said, wasn’t built for “functionality,” but has been modernized and adapted and now has everything a 21st-century residence requires, along with a dungeon, which for some buyers may also be a requisite.
MORE: Arizona’s Most Expensive House—With an Indoor Go-Kart Track and Shooting Range—Sells for a Record $40.2 Million
The chateau, meanwhile, has a hot tub room with mountain views, as well as a garage.
The property is being sold furnished, and will come complete with the hand-carved statues, armor, mounted swords, stained-glass windows and a host of antiques dating to the 15th and 16th centuries.
The owner, an antique collector who couldn’t be reached for comment, “is always looking for that hidden jewel and he found that here,” Burk said.
The next custodian is likely to stem from a varied pool of buyers, Burk said, that would include “the trophy-home buyer, someone who can say ‘I own a castle.’”
The property could also appeal to someone looking for a vacation home, or a multi-generational estate, and beyond that “there’s the dreamers,” she said. “We definitely try to market to people who like Medieval history or maybe do Renaissance fairs.”
The seller “really wants it to go to someone with the same passion.”
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