����Ӱҵ

����Ӱҵ University administrators are good stewards with university money based in part on a strong financial profile and solid managers, according to two new credit ratings.

Following detailed presentations on the university’s finances to credit rating agencies Moody’s and Standard & Poor’s Global, ����Ӱҵ has received positive bond ratings along with a stable outlook for the future by both independent agencies.

Moody’s has given ����Ӱҵ an A+/Stable Outlook rating, while Standard & Poor’s Global has designated ����Ӱҵ with an Aa3/Stable Outlook rating. 

“ ����Ӱҵuniversity obtained updated ratings since we are intending to refinance some existing debt,” said Mark M. Polatajko, Ph.D., ����Ӱҵ’s senior vice president for finance and administration. “ ����Ӱҵratings are provided to the public and potential investors to indicate the ability of the bond issuer to pay the debt. It is like a FICO credit score for an individual. A better rating translates to a lower cost of borrowing.”

Moody’s and Standard & Poor’s Global cited several reasons for a positive outlook for ����Ӱҵ as an investment grade with low risk:

• ����Ӱҵ’s enterprise profile is very strong, characterized by solid retention and matriculation with a large full-time equivalent (FTE) enrollment.
• ����Ӱҵuniversity’s financial profile is very strong, characterized by robust and growing available resources and healthy financial policies (high wealth and liquidity/low direct debt). 
• Its solid management team has demonstrated a willingness to make material cuts in operating expenses in order to insulate the university from the pressures of the pandemic.
• ����Ӱҵuniversity’s recent R1 research university designation by the Carnegie Classification of Institutions of Higher Education is viewed as a positive credit factor.
• ����Ӱҵ’s Board of Trustees provides solid governance.

Both agencies also pointed out risks and challenges that require the university’s continued vigilance and dedication to sound fiscal management, including:

• Unfavorable demographics for graduating high school seniors who are bound for college.
• ����Ӱҵhighly competitive Ohio higher education landscape.
• Enrollment pressures from the pandemic.

“These ratings show investors that the university is financially sound and a low-risk investment, which will draw more investors and drive down the interest cost,” Polatajko said.

For more information about ����Ӱҵ, visit www.kent.edu.

# # #

Media Contacts:
Eric Mansfield, emansfie@kent.edu, 330-672-2797
Emily Vincent, evincen2@kent.edu, 330-672-8595