The University of Denver’s long-term debt rating has been upgraded to A+ from A by Standard & Poor’s. The agency also reports that the University’s rating outlook is stable.
“The upgrade is based on Standard & Poor’s assessment of the University’s continued strong demand trends and healthy financial profile, including continued strong operating surpluses and adequate levels of financial resources during an otherwise challenging economic environment,” according to a Standard & Poor’s statement.
The statement notes that the University’s debt of $143 million currently is structured at a fixed rate. The maximum annual debt service is approximately $11.6 million, or a low 2.8 percent of budget, and the University has indicated it has no near-term debt plans.
“The stable outlook reflects our expectation that DU will continue to report strong operational surpluses and maintain its solid demand profile and financial resources as well as conduct a successful capital campaign,” said Blake Cullimore, credit analyst for Standard & Poor’s. “We also expect that any additional debt will be commensurate with a growth in financial resources.”
“This rating upgrade matches the University’s current credit rating from Moody’s Investors Services of A-1,” says Craig Woody, DU’s vice chancellor for business and financial affairs. “It’s very good news for the University, especially in this challenging economic climate.”