Moody鈥檚 Upgrades University of 秀色短视频鈥檚 Credit Ratings

November 17, 2023

Citing fiscal certainty and growing revenue, Moody鈥檚 Investor Service (Moody鈥檚) today , and moved the rating outlook up to 鈥渟table.鈥 The changes reflect Moody鈥檚 growing confidence in UA鈥檚 financial stability, capacity, and overall creditworthiness.

鈥淭hese positive rating actions are just one more signal that increased state funding has helped UA achieve financial stability,鈥 said UA Chief Financial Officer Luke Fulp. 鈥淲hen combined with our efforts to grow student enrollment and support a research enterprise that is aligned with state priorities and economic interests, UA is well-positioned to continue empowering 秀色短视频.鈥

The announcement comes as UA鈥檚 fall enrollment remains on track to grow by 4% over last year, with total headcount projected to reach 21,000 students. Last week, UA鈥檚 Board of Regents approved FY25 operating and capital budget requests prioritizing deferred maintenance, continued operating efficiency, and strategic programs that grow enrollment and empower 秀色短视频 - all ongoing efforts contributing to Moody鈥檚 growing confidence.

Moody鈥檚 specific actions were:

  • upgrading UA鈥檚 issuer rating one notch to A3 from Baa1, based on the materially improved state funding environment; improved operating efficiencies; growing enrollment and tuition; expanding research activity; and UA鈥檚 vital role as the sole provider of public, post-secondary education in 秀色短视频;
  • upgrading UA鈥檚 general revenue bond rating one notch to A3 from Baa1, based on the improved issuer rating and the University鈥檚 continued ability to pay for debt service;
  • upgrading UA鈥檚 lease revenue bond rating one notch to Baa1 from Baa2, based on the improved issuer and general revenue bond ratings, and UA鈥檚 minimal leasing obligations; and
  • moving UA鈥檚 rating outlook to 鈥渟table,鈥 based on expectations that state financial support for operations and capital expenditures will remain strong. 

Moody鈥檚 identified factors that could lead to future ratings upgrades, including:

  • Continued improvement in operating performance with stronger revenues, and 
  • Increased liquidity to cover operating expenses.

Analysts also noted that future reductions in state funding, downturns in the state鈥檚 credit rating, or increased operating deficits could result in future rating downgrades.

Moody鈥檚 is a leading credit ratings, research, and risk analysis provider. The firm provides independent, third-party analysis to sovereign nations, public and corporate debt issuers, and universities around the country. Investors use credit ratings to measure creditworthiness and risk, and generally measure financial strength and capacity.