Debt Management: Ratings
The University's long term debt ratings are:
- Aa1, with stable outlook (Moodys Investors Service)
Aa1 rating – reflects the University's "strong student and research market positions and ample balance sheet reserves. Although state operating support has been limited in recent years, the University receives good capital support in the form of debt service on $328 million of its debt. These strengths are offset by softening operating performance and expected additional debt issuance."
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 (Standard & Poor's)
AA rating – S&P assessed the University's enterprise profile as very strong, reflecting stable enrollment and robust demand, with very good selectivity and student quality. The University's financial profile was assessed as very strong, reflecting S&P's view of the University's positive operations on a cash basis, financial resources to debt that are low for the rating category, and a moderate maximum annual debt service burden. When combined, this leads to an indicative final long-term rating of 'AA'.
Stable Outlook – reflects S&P's view that "the university will continue to experience favorable demand trends and steady enrollment, steady state financial support, improve its operating performance on a full-accrual basis, and maintain a manageable debt burden in the next two years."
Moodys Investors Service - Ratings Report for Commercial Paper Notes, dated 2-8-2017 (pdf)
S&P Global Ratings - Ratings Report for Commercial Paper Notes, dated 2-8-2017 (pdf)
Moodys Investors Service – Ratings Report for Series 2016A, dated March 21, 2016 (pdf)
Standard & Poor's – Ratings Report for Series 2016A, dated March 16, 2016 (pdf)
Moodys Investors Service – Ratings Report for Series 2015B, dated August 3, 2015 (pdf)
Standard & Poor's – Ratings Report for Series 2015B, dated August 5, 2015 (pdf)