Bond rating lowered for Wartburg College - KWWL - Eastern Iowa Breaking News, Weather, Closings

Bond rating lowered for Wartburg College

WAVERLY (KWWL) - Officials of Wartburg College say a downgrade of its bond rating by Fitch Ratings does not mean the institution isn't in good financial health.  Wartburg spokesman Saul Shapiro says the downgrading of some Iowa Higher Education Loan Authority's revenue bonds issued on behalf of the college means nothing.  Shapiro says as far as day-to-day expenses are concerned, the 1,800-student college will meet all its obligations.  Wartburg President Darrel Colson says the college's negative operating margins were due to market decline, increased depreciation and a bad economy. He added the challenges Wartburg faces are no different from those of comparable institutions.  Shapiro says all departments had to cut their budgets by 5 percent and the school reduced its retirement benefit contribution by 2 percent.

Multimedia Journalist:  Bob Waters

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