FOR IMMEDIATE RELEASE
Upgraded UC credit rating reflects strong financial performance, operational efficiencies and innovative strategies
UC Now in Top 10 of All Public Universities
Moody’s Investors Service today (Oct. 8) announced it is upgrading the University of California’s general revenue bond rating to “Aa1” with a positive outlook from “Aa2.” This is the second-highest debt rating an institution can receive and places UC in the top 10 of all public universities that Moody’s rates.
General revenue bonds finance the University’s core operations, such as research and instruction.
In its report, Moody’s cited the University’s strong financial performance, a renewed focus on operational efficiencies and the impact of a variety of new financial strategies that have had a material impact on improving UC costs.
“UC’s financial performance remains strong,” stated Moody’s, specifically citing UC’s “stable operating performance,” a balance sheet that is “healthy and improving further,” and the University’s continuing focus on “long-term strategic planning, accountability, [and] transparency.”
The credit rating agency also upgraded five of eight other UC ratings, including its pooled medical center revenue. UC’s five medical centers collectively represent the third-largest system of publicly owned hospitals in the nation. Other research facility and limited project revenue bonds were also upgraded.
These strong credit ratings enable the University to reduce costs by borrowing at lower interest rates and at more favorable terms.
“This upgrade reflects strong confidence in the University’s financial management,” said Katherine N. Lapp, UC executive vice president for business operations. “While UC is undergoing dramatic structural reforms in a variety of different areas, Moody’s recognizes it is doing so from a position of fundamental financial strength. The University has implemented a more strategic approach to its debt structure.”
Moody’s cited a number of other factors contributing to UC’s strong financial position. Among them:
Moody’s added that UC’s “premier position in teaching, research and clinical care, along with a clear role in the state’s higher education system as the research intensive institution” are also vital components to its credit strength.
For the full credit ratings report: www.universityofcalifornia.edu/news/2007/moodysupgrade1007.pdf
Top 10 Credit Ratings among Public Universities
# # #
Send comments or questions
about this web site to one of the webmasters