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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 strong student and research market positions and ample balance sheet reserves, all incorporated in the University's excellent strategic position.

    Stable Outlook – reflects "continued favorable student demand and sponsored 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 some decline in freshman applicants, 3) manageable pro forma maximum annual debt service burden, and 4) favorable philanthropic support.

    Stable Outlook – reflects S&P's view that "over the next two years, UM's enrollment will modestly increase while other demand metrics remain firm and its adjusted full-accrual financial operating performance will improve and become more robust over time."