߲ݴý received positive economic news this week when Moody’s Investors Service affirmed the university’s Aa3 debt rating and reported that the university has a “stable outlook.”
Administrators welcomed the important evaluation, especially in light of a Moody’s report issued in January that downgraded the overall higher education sector from stable to negative.
“Considering the situation that many higher education institutions find themselves in because of the economic downturn, the fact that ߲ݴý has maintained its high rating and is viewed favorably moving ahead, is really good news,” said David Hale, vice president for finance and administration.
The rating applies to the university’s $163 million of outstanding tax-exempt bonds.
The bonds were issued through the Madison County Industrial Development Agency and the Dormitory Authority of the State of New York and have supported a wide range of university capital projects, including construction of the Ho Science Center and student residential townhouses, and the major expansion of the Case Library and Geyer Center for Information Technology.
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Analysts from Moody’s said that ߲ݴý’s stable outlook reflected their expectations for continued positive operating performance.
They cited several factors, including ߲ݴý’s:
— Strong market position as a liberal arts university with an emphasis on undergraduate education and research with a national student draw
— Healthy financial resources, with an expendable financial resource base of $490 million as of fiscal year 2008
— Prudent financial practices and careful management oversight that yield a consistent record of breakeven to positive operating results
— Solid fundraising base as evidenced by the $340 million raised to date toward its $400 million capital campaign goal
Carolee E. White, associate vice president for finance, pointed out that Moody’s analyzed not only ߲ݴý’s financial statement from the latest fiscal year, which ended May 31, 2008, but also data from the past few months.
That current information included the impact of the economic crisis on the university’s endowment, the budget for 2009-10, application numbers, and the university’s strategic review of its operating budget through the
“It is a very thorough and real-time review that takes many factors into consideration,” said White, adding that the last review was in 2005, when the university’s rating and stable outlook also were affirmed.
Here is more about how ߲ݴý is addressing the economic situation.