S&P Global Financial has affirmed the University of Virginia has retained its AAA general revenue pledge bond rating – the highest possible rating – based on high demand for student enrollment plus the University’s sound “management and governance, and financial performance.”
The AAA rating indicates the University has demonstrated superior creditworthiness and financial strength. It also means the University can borrow funds at a lower cost, saving money on capital improvements and other major investments.
“The stable outlook reflects our view that UVA over the next two years will remain one of the nation’s premier public universities with healthy student demand and a growing health system, and be managed appropriately while producing surplus operations and maintaining ample financial resources and moderate debt burden,” S&P Global wrote in a statement.
UVA earned the top rating despite S&P Global’s “negative” outlook for higher education overall.
S&P Global rated roughly 450 not-for-profit higher-education institutions in 2025, and fewer than 5% attained the AAA rating awarded to UVA. The agency downgraded 25 institutions, citing, among other concerns, declining enrollment, increased operating costs and the uncertainty of federal funding.
UVA leaders said the University has been able to avoid the negative trends that have caused concern elsewhere.
“This reaffirmation of UVA’s AAA rating is a strong validation of our financial stewardship, governance and long-term planning,” Executive Vice President and Chief Operating Officer Jennifer “J.J.” Wagner Davis said. “Maintaining the highest possible credit rating is a reflection of the University’s 33,000 dedicated faculty, staff, clinicians and leaders and our commitment to excellence.”
