[La Verne, CA] Earlier this month, Moody’s Investors Service upgraded the University of La Verne’s creditworthiness as a result of the University’s continued enrollment and revenue growth, solid cash flow and material growth in flexible reserves fueled by retained surpluses.
The rating upgrade for series 2005A and series 2010A bonds went from a Baa2 to a Baa1 with a stable outlook, which will affect nearly $90 million in fixed rate bonds. The University has held a Baa1 with stable outlook ratings, since March 2004.
“Since the economic crisis of 2008, ratings downgrades have outpaced upgrades,” said La Verne Chief Financial Officer Avo Kechichian. “This upgrade is a result of the University working more strategically. This Baa1 rating incorporates our stable market position as a private university, our consistently strong operating performance, our sustained improvement in market position and our increased growth in revenue and enrollment.”
Moody’s is one of three major credit agencies, which measures an institution’s ability to pay back borrowed money on time and in full. The upgrade will help the University to realize lower future borrowing costs.
The upgrade shows “the University continues to experience healthy growth which is diversified across traditional undergraduate, professional and extended education programs, providing broad stability ….” Moody’s wrote in a report on its decision.
“Our objective is to be fiscally solvent and responsible,” said Kechichian. “This rating upgrade is a clear indicator that our efforts are working. It also affirms the progress La Verne is making in achieving the ambitious goals we set out for ourselves in our 2020 Strategic Vision, as we continue to strengthen our financial resources.”
Contact: Alisha Rosas, Interim Director of Public Relations, University of La Verne, (909) 448-4708, firstname.lastname@example.org.