System membership cited as strength UAH’s S&P bond rating upgraded to A+
HUNTSVILLE, Ala. (December 7, 2011) — Standard & Poor’s Ratings Services (S&P) has raised its bond rating on The University of Alabama in Huntsville to ‘A+’ from ‘A’.
The rating letter was cited in a Standard & Poor’s report, which was released today. The report also projected a stable outlook for the university.
“We’re pleased with the confidence that Standard & Poor’s has demonstrated in our operations as a result of their improved bond rating of our institution,” said UAHuntsville President Robert Altenkirch. “This upgrade to A+ clearly points to solid financial practices for our campus and a healthy outlook for the future.”
“The raised rating reflects our view of the university’s strong financial resources, consistent positive operations on a full accrual basis, and stable enrollment,” said S&P credit analyst Bianca Gaytan-Burrell.
The S&P report cited five primary reasons for the improved rating. The first strength is UAHuntsville’s membership in the three-campus University of Alabama flagship system.
Stable enrollment, the university’s niche in technical studies, our history of balanced operations on a full accrual basis, and healthy financial resources were noted as primary factors for the upgrade.
In terms of governance, S&P pointed to the role of the Board of Trustees in determining campus policy, approving operating budgets, educational programs, facilities and capital financing for each campus as well as setting tuition and fees.
The higher credit rating is a major factor in lowering the cost of funds for the university in its future debt issuance
For more information,
contact Ray Garner
- Hits: 1499