The University of Virginia has again received top ratings from each of the three major credit rating agencies, each noting the University’s exceptional performance, reputation and financial strength.
Moody’s Investor Services, Standard & Poor’s and Fitch Ratings each recently affirmed a “AAA” debt rating for UVA, signifying the highest levels of financial strength and the lowest credit risk. The University has consistently been one of a handful of public universities to earn the AAA rating from all three agencies. This year, UVA is one of four public universities in the nation with AAA ratings from the three rating agencies.
The agencies cited several factors in support of their top rating, including UVA’s longstanding ability to attract top students, research prowess, strong reputation, competitive health care services and superior financial management, including an impressive fundraising track record. S&P Global noted that the University continued to see increases in student applications, attracting and selecting top students and maintaining a 96 percent retention rate among first-year students. The agency also noted that the University enjoyed its best fundraising year to date in 2016.
“Consistently earning the AAA rating positions the University among the nation’s top public institutions, and we are very proud to have again earned this recognition,” Executive Vice President and Chief Operating Officer Patrick Hogan said. “These ratings enable us to secure the lowest possible interest rates, ensuring UVA’s continued financial strength and ability to advance discovery, innovation and scholarship, to provide excellent health care and to educate future leaders.”
The University will issue two series of refunding bonds in the coming weeks, totaling $370 million. Proceeds will refinance existing bonds and commercial paper held by the University and generate cost savings.
The first series of bonds will be released this week, followed by a second series the week of Feb. 6.