University of California borrows nearly $1 billion for construction

The University of California is issuing nearly $1 billion in new debt, making the deal the largest bond sale of the week, Reuters has reported. The $968.24 million in bonds, more than half of which is tax-exempt, will go toward construction projects. Last month, Fitch Ratings downgraded the university’s credit score to AA from AA-plus, and earlier this month, Moody’s bumped it down from Aa1 to Aa2. In its report, Moody’s noted that the system’s debt had doubled in the last eight years, bringing its total debt load to more than $18 billion.