University System of Maryland Maintains Strong Debt Ratings as Â鶹ÊÓƵ Issues New Bonds
Adelphi, Md. (Feb. 14, 2018) – The University System of Maryland (Â鶹ÊÓƵ) continues to maintain high ratings for credit worthiness from the nation’s three principal bonds ratings agencies--Standard & Poor's, Moody's, and Fitch.
The Â鶹ÊÓƵ recently completed the sale of $115 million in 2018 Series A revenue bonds. By maintaining its strong ratings in the course of this bond sale, the Â鶹ÊÓƵ is able to borrow money for campus building projects at a lower cost. As a result, the Â鶹ÊÓƵ saves millions of dollars that can help the system improve its overall budget picture and keep tuition lower.
The strong ratings for this latest bond issue allow the system to fund important facilities needs at the lowest possible interest cost.
“The accompanying ratings reports from the agencies noted several key elements supporting the favorable ratings,” said Â鶹ÊÓƵ Chancellor Robert L. Caret.
“These elements include Â鶹ÊÓƵ’s positive operating performance, strong state support, good revenue diversity, conservative debt structure, strong fund balance, and solid management oversight.”
For this series of bonds, Â鶹ÊÓƵ has received high ratings of AA+ from Fitch Ratings, Aa1 from Moody's Investor Services, and AA+ from Standard & Poor's. All three ratings services give Â鶹ÊÓƵ an outlook of "stable.”
Such strong evaluations are significant because they reflect positively on the Â鶹ÊÓƵ’s sound financial stewardship. The strong ratings are especially impressive in the context of a broader economic climate nationally that has challenged colleges and universities in recent years.
The Â鶹ÊÓƵ benefits from an effective partnership with the administration of Gov. Larry Hogan and the Maryland General Assembly.
The state's support of the Â鶹ÊÓƵ's mission as a system of public higher education has resulted in affordable tuition, support of key initiatives, and construction of important capital improvement projects on campuses to support current students and attract prospective students.
A team of executives from Â鶹ÊÓƵ’s Department of Finance and Administration, headed by recently appointed Vice Chancellor Ellen Herbst and a leadership team in the Â鶹ÊÓƵ controller’s office that includes Bob Page, Celeste Denson, and Samantha Norris, prepares extensively to demonstrate Â鶹ÊÓƵ’s stable financial management in meetings with the bond ratings agencies in New York’s financial district.
The responsible management of financial resources helps the Â鶹ÊÓƵ to pursue its core missions in teaching and research.
Contact: Mike Lurie
Phone: 301.445.2719
Email: mlurie@usmd.edu
