Moody’s, Standard & Poor’s affirm EMU’s long-term debt rating
YPSILANTI - Moody’s Investors Services has affirmed EMU’s underlying A2 long-term debt rating and labeled it “stable.”
In addition, Standard & Poor’s, a bond-rating agency, has given EMU an A long-term debt rating. The ratings action affects $158 million of debt.
“This is the financial market’s endorsement of where EMU is heading,” said Steve Holda, director of finance for EMU. “Who better to provide a financial affirmation than two firms whose purpose is to let people know where it’s safe to invest their money.”
Moody’s assigned EMU’s excellent rating due to “the sound fundamental market position as a regional public university which should lead to stable enrollment levels despite some recent declines. EMU has a history of balanced operating performances and healthy debt service coverage is expected to continue.”
Standard and Poor’s cited EMU’s “enrollment and demand trends with a growing applicant pool; healthy financial performance with consistent balanced operations despite a decreasing reliance on state operating appropriations.”
S&P also noted EMU’s “strong new leadership team with a clear vision for the future of the University.”
Bond ratings influence the cost to the University to borrow money. The higher the rating, the less interest is paid on a loan. The highest attainable rating is AAA.
Eastern Michigan University is a public, comprehensive university that offers programs in the arts, sciences and professions. EMU prepares students with the intellectual skills and practical experiences to succeed in their careers and lives, and to be better citizens.
Eastern Michigan University is a public, comprehensive university that offers programs in the arts, sciences and professions. EMU prepares students with the intellectual skills and practical experiences to succeed in their career and lives, and to be better citizens.
Editor's Note: Looking for an expert source for a story? Check out EMU's Eastern Experts online at www.emich.edu/univcomm/easternexperts.