Ohio University’s financial outlook is stable according to Recent Moody's Investors Service Aa3 Rating
Ohio University had its long-term credit rating of Aa3 reaffirmed by Moody’s Investors Service, the corporation announced today. This issuer rating, which reviewed the University’s general capacity to fulfill its financial obligations, is the sole published underlying rating that Moody's maintains on Ohio University. A stable outlook indicates a low likelihood of a rating change over the medium term.
In its market analysis, Moody’s affirmed OHIO’s ability to “continue to confront student demand challenges given its exposure to highly competitive conditions and ongoing weak demographic trends.”
The University was grateful for this achievement and recognized finance and administration leadership and staff for their expertise and hard work.
“We are pleased that, given the challenging financial outlook overall for colleges and universities at the national level, OHIO has been assessed with a strong financial rating, affirming the overall strength of our great institution,” said Senior Vice President for Finance and Administration Deborah J. Shaffer. “Our faculty and staff have done an excellent job prioritizing budget management, which has positioned OHIO for financial success. As a result, the institution is poised to successfully meet long-term student demand in a challenging landscape.”
As a large, public provider of higher education, Ohio University has held steadfast at an Aa3 rating affirmed by Moody’s over the past eight years.
The University was recognized by Moody’s for adapting to challenging market conditions, such as suppressed tuition revenues due to the tuition guarantee, highly competitive condition in the higher education marketplace, and ongoing weak demographic trends.
In their recent rating report, Moody’s noted that, “with over $1 billion in cash and investments, (OHIO) has substantial wealth providing solid coverage of debt and operating expenses. Similarly, liquidity is strong, providing 237 monthly days cash on hand, which affords significant financial flexibility. Through prudent financial management, (OHIO) will maintain its favorable operating performance and very good debt affordability, even as revenue challenges persist. Offsetting credit challenges include a highly competitive student market and weak regional demographics within its core market, and elevated exposure to unfunded pension obligations.”
For more information about the recent Moody’s Investors Service rating report, visitwww.moodys.com.