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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The city of Boise is facing a potential lawsuit brought by the parents of a girl injured by shattered glass at this year’s Idaho Potato Drop held on New Years Eve.
The Idaho Statesman obtained a copy of the tort claim filed earlier this month, which is a precursor to a possible civil lawsuit.
Richard and Daryl Ratto filed the tort claim against the city and multiple other entities, according to the newspaper, after a shard of glass slashed their daughter’s face at the late-night celebration, which required surgery.
As Boise State Public Radio previously reported, police reports from that night said they couldn’t definitively conclude that concussive blasts from fireworks shattered windows on the AT&T building and the Idaho Capitol, which fell on spectators.
The Rattos are demanding $10 million from multiple public entities, saying they’ve known for years that Potato Drop organizers have diverted from plans submitted to city officials to obtain permits for the event.
Body cam footage from that night shows Dylan Cline, the event’s CEO, high fiving his pyrotechnics contractor and saying, “F— yeah…” after being told of the broken windows by police.
City officials have 90 days to respond to the tort claim before the Rattos could file a lawsuit.
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Meridian, Idaho (CBS2) — High Desert Harley-Davidson is hosting its 16th annual Idaho Patriot Thunder Ride on Sunday, June 28th. It’s a summer tradition that brings hundreds of riders together to raise money for Idaho’s military families while also tipping a helmet to America’s upcoming 250th birthday.
“Idaho Patriot Thunder ride is a big ride for us every year. We’ve been doing it now for 16 years — first year was back in 2010 when we started this whole ride,” said Mark Dukes, General Manager of High Desert Harley-Davidson.
Registration begins at 7am on Sunday at High Desert Harley Davidson, kickstands are set to go up at 10 a.m., with hundreds of riders escorted by law enforcement down to Carl Miller Park in Mountain Home. After the ride, riders will head back to the dealership, where the event continues with food trucks, live bands, a bike wash and raffles, including a Harley-Davidson bike giveaway.
Organizers say the fundraising is straightforward: Every dollar raised goes directly to two military nonprofits, with donations split evenly between Operation Warm Heart and the Idaho Guard and Reserve Family Support Fund.
“100% of the proceeds go to Idaho Guard and Reserve Family Support Fund and Operation Warm Heart, and we’ve been doing this for years,” Dukes said.
Dukes said the money helps cover needs that can pop up unexpectedly for service members and their loved ones.
“If somebody were to get injured or get hurt for deployment, if they need food or shelter, airline tickets, toys for their families — it’s all about taking care of military people that take care of us so well,” he said.
This year also comes with extra flair: High Desert Harley-Davidson built two custom bikes — one Indian and one Harley-Davidson — both honoring America’s 250th anniversary. Dukes said the bikes will feature Idaho Patriot Thunder badging, 250th anniversary details and American flags, and they’ll be ridden at the front of the pack before being put up for sale after the ride.
“We have one Indian motorcycle and one Harley-Davidson. They’re gonna have Idaho Patriot Thunder badging, 250th anniversary, American flags — they’re gonna be custom done. Both Bruce and myself are gonna ride those bikes in the front, and when we get back from the Patriot Thunder ride, we’re gonna put those up for sale,” Dukes said.
Over the past 16 years, the event has raised up to $75,000 each year. Registration is open now through High Desert Harley-Davidson’s website, with organizers encouraging community members to get involved whether they ride or not.
POCATELLO, Idaho — A wildfire sparked in Bannock County Sunday afternoon has burned 200 acres and is threatening structures, according to fire officials.
The fire is burning in an area between Pocatello and Inkom known as the Portneuf Gap, according to a news release from the Bureau of Land Management. The BLM is managing firefighting operations for the Gap Fire.
The release says some structures are threatened in “a small area west of Inkom” but did not say how many. Bannock County spokeswoman Emma Iannacone said an evacuation order for residents on Canyon Road was in place for a short time but was lifted about 7 p.m.
Evacuations have been ordered in the area, but a precise location was not immediately available.
Investigators have not determined the cause of the fire, though the BLM said it is burning through grass and brush. The agency did not have an estimated time of containment as of 5:15 p.m.
Several agencies, including U.S. Wildland Fire Service Great Basin Unit 3 -Idaho Falls and the U.S. Forest Service, are assisting with the effort to get control of the blaze. Watch Duty reported that the Forest Service is contributing its Helicopter Bucket Crew to the fight.
The wildfire was first reported at about 1:45 p.m. near the 6000 Block of W. Old Highway 91, fire officials said.
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