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V O L . X X I I N O. V I I I A P R I L 1 8 , 2 0 1 6 24 B A N K I N G & F I N A N C E F O C U S Ratings Services lowered its rating one notch, from AA+ to AA — from the highest rating a school can attain to the second-highest rating — with an outlook of "stable." Greene doesn't view the additional debt or the S&P rating downgrade as a burden. "Colby traditionally has had very low debt," says Greene. "Given our scale, we're still relatively low and in very good shape." Moody's Investors Service, which assigned its third-highest rating of Aa2 on the new debt, affi rmed its Aa2 rating on Colby's 2012 and 2014 bonds, and also ranked the college as "stable." Moody's cited the college's strengths, starting with a strong balance sheet of nearly $1 billion in total fi nancial resources that provide it with signifi cant fi nancial fl exibility, as well as conservative bud- geting and prudent fi scal management, resulting in a healthy operating margin and ample debt service coverage. Still, Moody's cited growth in fundraising as essential to help the col- lege maintain its position. It also cited as potential challenges an "intensely competitive student market," Colby's plans to increase fi nancial aid to meet enrollment goals for quality and diver- sity of its student body and Colby's reliance on student charges to meet about 60% of its operating budget. Fundraising remains essential Greene agrees with those points, and he's put increased fundraising and stu- dent outreach on the docket. Funds raised over the past half decade or so have ranged from $20 mil- lion to $25 million per year. " at's signifi cantly behind many of our peers," Greene says. "Given the capacity of our alumni group and their support, it's striking to me that we are not performing as well as many colleges simi- lar to us. e debt is one part of an overall strategy, in terms of being able to fi nance Colby's aspirations, but it's not the only part of the strategy. Raising our sights with regard to fundraising is a critical component. I want to make sure we're performing at the highest level in that area. My goal is to move us to a more consistent base of $50 million per year. We passed that number for this academic year. So we're on the right footing." With regard to outreach, other ini- tiatives since Greene's arrival include reorganizing the President's offi ce, integrating career services and alumni relations, and expanding the offi ce of admissions and fi nancial aid. ose initiatives, says Greene, will help raise Colby's visibility beyond the Northeast, while also cement- ing Colby's position as a preeminent liberal arts college in an environment where higher education is trending to applied skills, and integrating the college in the welfare of the broader Waterville and regional community. Eff orts to reach a broader student audience are already paying off . For the Class of 2020, Colby received 9,833 applications, nearly double the number from just two years ago. » C O N T I N U E D F RO M P R E V I O U S PA G E TD Bank, N.A. | Loans subject to credit approval. Equal Housing Lender Now, more than ever, you need a bank that stands beside you. TD Bank helps you make the most of every opportunity. We are the partner you are looking for, providing you with experience, guidance, and smart solutions that position you and your business for success. • Loans and lines of credit • Treasury management services • Commercial checking choices • Equipment fi nancing For a higher level of personal service, connect to tdbank.com/commercialbanking or call 1-888-751-9000. A fi nancial relationship you can trust. 556529.2-LM-U-ME16-QB26748_MaineBiz_BankingFinance_9x5.5_4C.indd 1 4/6/16 11:19 AM P H O T O / T I M G R E E N WAY Colby College is using $100 million in bond fi nancing in part to upgrade its athletic facilities, including this baseball fi eld.

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