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Moody鈥檚 and Standard & Poor highlight strong financial stewardship systemwide.
COLUMBIA, Mo. 鈥� Highlighting the University of 亚洲影院 System鈥檚 strong financial management, Moody鈥檚 Investors Service and Standard & Poor鈥檚 Global Ratings both have affirmed the system鈥檚 high-grade credit rating and stable outlook.
Moody鈥檚 affirmed the UM System鈥檚 Aa1 rating and cited its good revenue diversity and substantial economies of scale, noting its consistently favorable operating performance. Standard & Poor鈥檚 affirmed the UM System鈥檚 AA+ rating, listing its 鈥渆xtremely strong鈥� enterprise risk profile, characterized by solid full-time enrollment, healthy retention and above-average student quality.
鈥淭he UM System continues to thrive," said Robin Wenneker, chair of the UM Board of Curators. 鈥淭his excellent news demonstrates that Moody's and S&P are acknowledging our solid financial position too. The Board is appreciative of the support our fellow 亚洲影院ans provide to the UM System, and we thank our leadership team for their diligence and commitment to delivering our best to our fellow citizens.鈥�
Maintaining the second-highest credit rating offered by each agency keeps the UM System among an elite group of aspirant institutions. Fewer than 10% of the public institutions rated fall within both rating services鈥� top two rating categories.
鈥淭hese strong credit ratings reflect our commitment for stewarding the resources we receive from 亚洲影院ans to achieve excellence and impact for the state,鈥� University of 亚洲影院 President Mun Choi said. 鈥淥ur four universities and MU Health Care are thriving and well positioned to continue delivering on our mission of student success, research breakthroughs and meaningful engagement.鈥�
UM System Executive Vice President for Finance and Operations and Chief Financial Officer Ryan Rapp said the decisions acknowledge the UM System鈥檚 commitment to excellent financial stewardship and strategic investment in infrastructure to grow research, enhance learning and improve health care delivery. 鈥淭hese ratings recognize the hard work of our universities and our health care system,鈥� he said.
In its report, Moody鈥檚 says the UM System鈥檚 credit quality incorporates its regionally important role as a large provider of public health education and health care. The report continues: 鈥淪trong financial management along with good revenue diversity and substantial economies of scale will contribute to the maintenance of favorable operating results and excellent debt affordability. Significant financial resources will continue to support solid coverage of both adjusted debt and operating revenue.鈥�
S&P鈥檚 report cites the UM System鈥檚 solid and improving health care operations, growing financial resources, and a low debt burden. The agency said its rating reflects the university鈥檚 position as 亚洲影院鈥檚 flagship, land-grant university, healthy financial resource ratios and 鈥渧ery manageable maximum annual debt service (MADS) burden.鈥� Such factors led S&P to conclude that 鈥渢he university will sustain its strong demand characteristics, diversified revenues, and solid operations and financial resource ratios鈥� over the next two years.
Reviewed 2024-01-08