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Debt Management: Ratings

The University's long term debt ratings are:

  • Aa1, with stable outlook (Moodys Investors Service)

    Aa1 rating – The Aa1 rating reflects the University’s excellent strategic positioning reflecting in strong student and research market positions and ample balance sheet reserves. The stable rating outlook reflects continued favorable student demand and research trends, growing tuition revenue, stable to improving operating cash flow and debt service coverage despite additional debt plans.

    Stable Outlook – reflects "continued favorable student demand and research trends, growing tuition revenue, stable to improving operating cash flow and debt service coverage despite additional debt plans."

  • AA, with stable outlook (S&P Global Ratings)

    AA rating – The AA rating reflects their view of the University’s, 1) position as Minnesota’s flagship research university and land-grant institution, 2) stable enrollment with rising freshman applicants and matriculants, 3) improved financial performance on an adjusted full-accrual basis, 4) manageable pro forma maximum annual debt service burden, and 5) favorable philanthropic support.

    Stable Outlook – reflects S&P's view that "over the next two years, enrollment and demand trends will remain firm and its financial operating performance on an adjusted full-accrual basis will remain positive and become more robust."