May 12, 2010
University of Washington scores a triple-A grade from Moody’s
Moody’s Investors Service has recalibrated debt ratings for public higher education institutions based on the same criteria applied to corporate debt issuers. As a result, the University of Washington’s credit rating has been changed from Aa1 to Aaa — the highest rating available from the rating agency. The top rating reflects Moody’s view of the university’s overall strength and position as a global institution with sound financial management.
The UW is now one of eight institutions of higher education in the nation rated Aaa by Moody’s.
“The rating change reflects the UW’s commitment to prudent and innovative financial management practices even in the face of significant reductions in state funding,” said UW President Mark Emmert. “It validates our ongoing efforts to manage our resources as efficiently and as wisely as we can.”
UW Senior Vice-President V’Ella Warren expressed confidence in the UW’s ability to weather the continuing financial storm and emerge stronger than ever when the downturn ends.
Moody’s cited a number of strengths in a report released last fall, including strong student demand and excellent market position; diversified undergraduate and graduate programs at three campuses; its status as a major provider of medical education and clinical care; diversified revenue sources and balanced operating performance; and its prominence as a national leader in research.
Although the rating change is not expected to affect materially the UW’s debt costs, the University anticipates improved terms for bank lines of credit and similar financial transactions; increased demand for the institution’s debt; and enhanced confidence in financial management from donors and alumni.
