operating revenue. While research funding has
become increasingly competitive, and there is
potential for continued changes in reimbursement
mechanisms, research funding in general is prov-
ing to be a stable source of reimbursement and
revenue for research institutions. Rate covenants
generally carry little weight in legal provisions,since these organizations do not have the ability to
adjust their rates to federal or other sponsors on
an annual basis. However, additional bonds tests
carry more weight, and historical additional bonds
tests add comfort that historical revenues have at
least been sufficient to pay for the current and
proposed debt.■Education And Non-Traditional Not-For-Profits206 Standard & Poor’s Public Finance Criteria 2007