Debt Management: Ratings
The University's long term debt ratings are:
- Aa1, with stable outlook (Moodys Investors Service)
Aa1 rating – The Aa1 rating reflects strong student and research market positions and ample balance sheet reserves, all incorporated in the University's excellent strategic position.
Stable Outlook – reflects "continued favorable student demand and sponsored research trends, growing tuition revenue, stable to improving operating cash flow and debt service coverage despite additional debt plans."
- AA, with stable outlook (S&P Global Ratings)
AA rating – The AA rating reflects their view of the University’s, 1) position as Minnesota’s flagship research university and land-grant institution, 2) stable enrollment with some decline in freshman applicants, 3) manageable pro forma maximum annual debt service burden, and 4) favorable philanthropic support.
Stable Outlook – reflects S&P's view that "over the next two years, UM's enrollment will modestly increase while other demand metrics remain firm and its adjusted full-accrual financial operating performance will improve and become more robust over time."
Moody's Investors Service - Rating Action for Series 2019A, B, C, dated 4-12-19 (pdf)
Moody's Investors Service - Credit Opinion, dated 4-15-2019 (pdf)
S&P Global Ratings - Report for Series 2019A, B, C, dated 4-15-2019 (pdf)
Moody's Investors Service - $400 million Commercial Paper Program, Ratings Action, dated 5-17-2018 (pdf)
Moody's Investors Service Credit Opinion, dated 5-17-2018 (pdf)
S&P Global Ratings - $400 million Commercial Paper Program, dated 5-24-2018 (pdf)