Today, July 2, 2013, Moody’s Investors Service affirmed its A3 long-term rating with a stable outlook on Gustavus Adolphus College’s Revenue Bonds issued through the Minnesota Higher Education Facilities Authority.
The report detailed several financial strengths of the College, which led to the favorable rating. Those included a trend of positive operating performance with operating cash flow providing healthy debt service coverage, a solid market position as a Lutheran college, and the fact that all of the College’s debt is fixed rate, resulting in greater predictability of debt service expense.
“This news today from Moody’s affirming our A3 rating with a stable outlook is a clear sign of the College’s ongoing financial strength,” President Jack Ohle said. “Vice President for Finance Ken Westphal, the College’s senior administrative team, the faculty and staff serving on the College’s Budget Committee, and the commitment of all faculty and staff to be good stewards of the College’s resources have helped us maintain our continued fiscal stability.”
According to Moody’s website, an A rating means an institution’s financial obligations are considered upper-medium grade and subject to low credit risk.
Founded in 1909, Moody’s performs financial research and analysis on commercial and governmental entities and ranks the credit-worthiness of borrowers using a standardized ratings scale.
###
Media Contact: Director of Media Relations and Internal Communication Luc Hatlestad
luch@gustavus.edu
507-933-7510