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Syracuse University’s credit rating upgraded by Moody’s Investors Service
Syracuse University’s credit rating upgraded by Moody’s Investors ServiceDecember 13, 2007SU News ServicesSUnews@syr.edu
Moody’s Investors Service has upgraded Syracuse University’s credit rating from A1 to Aa3 — a significant change that demonstrates the financial strength of the University and is expected to reduce the institution’s costs of borrowing in the future. This is the first rating upgrade on record that the University has received from Moody’s.
The new rating comes as SU readies to issue $105 million in bonds in January that will provide funds for the completion of a new residence facility on Comstock Avenue and the Life Sciences Complex.
According to Moody’s, the upgrade “reflects the University’s sound student market position, long-term track record of positive operating performance, and healthy investment performance and fundraising contributing to growth of financial resources.”
Bonds rated A1 are considered upper-medium grade obligations, with low credit risk. Bonds rated Aa3 are judged to be of high quality by all standards with very low credit risk.
Moody’s identified strengths of the University as: a large and diversified enrollment base; strong fundraising and investment performance; and more than $1.2 billion in financial resources. Moody’s also commented that the University “has benefited from strong investment performance, with a 21.1 percent annualized investment return in FY 2007.”
“This upgrade of the University’s credit rating is excellent news,” says SU Chancellor and President Nancy Cantor. “It’s a clear indicator that our strategies in student and faculty recruitment, fundraising and endowment investment are paying off and shows that Syracuse is a strong institution that will only get stronger moving forward.”
“I am extremely pleased that Moody’s has upgraded Syracuse University’s credit rating,” says SU Executive Vice President and Chief Financial Officer Louis G. Marcoccia. “The University has many strengths that contributed to this upgrade decision.”
Moody’s Investors Service is among the world’s most respected and widely utilized sources for credit ratings, research and risk analysis. In addition to its core ratings business, Moody’s provides research data and analytic tools for assessing credit risk, and publishes market-leading credit opinions, deal research and commentary.