Fitch Ratings is the latest credit rating agency to give the University its highest grade for creditworthiness. This week, the agency affirmed UVA’s AAA Issuer Default Rating and upheld its AAA assessment of the University’s outstanding general revenue pledge bonds.
In its Rating Action Commentary, Fitch cited multiple factors that speak to UVA’s strong position as an institution, including “exceptional demand characteristics and steady enrollment, a broad revenue base including an accretive health care enterprise, robust fundraising history, a solid and growing research base, and a very strong financial profile with robust liquidity and leverage metrics.”
The ratings are a clear recognition of the University’s strong financial position and sound management. Maintaining the highest possible credit rating permits UVA to borrow funds at lower costs, saving the University money as it pursues major projects and initiatives.
“This affirmation of UVA’s creditworthiness is a testament to our responsible financial stewardship and the significant momentum we have built for the future,” Executive Vice President and Chief Operating Officer Jennifer “J.J.” Wagner Davis said. “On behalf of President Scott Beardsley and University leaders, we want to share a note of gratitude to our 34,000 employees who have worked so hard to set and maintain the standard for excellence that is reflected in this major acknowledgment for our institution.”
UVA received Fitch’s top ranking even as the agency’s outlook for the U.S. Public Finance Higher Education sector is deteriorating. The University maintains AAA ratings from all three major credit rating agencies; S&P Global Ratings affirmed its rating in December.
