2007-08 Financial Statement Highlights
- During 2007-08 the University's long-term debt decreased to $683 million.
- Principal payments of $31.9 million were made during the year.
- Ratings were reviewed by Moody's and Standard & Poor's in September 2008 in conjunction with the restructuring of the Series 2003 and 2006 bonds.
- Moody’s Investor Services upgraded the University to an Aa3 rating with a stable outlook.
- The upgrade of the rating from A1 to Aa3 was primarily driven by Moody’s expectation of continued strong trends in operating cash flow, balance sheet growth and a strengthening student market position.
- Excerpts of September 2008 rating agency opinions:
Moody's Investors Service rating reflects:
- The University’s large diversified enrollment base, with highly reputable graduate programs and continued healthy growth in net tuition per student; continued strengthening of student demand most directly demonstrated by a ramp-up in yield on admitted students.
- Healthy and highly consistent cash flow generated by the University as a whole stemming from strong performance of health system, growing research activities and a rising endowment.
- Large financial resource base which has exhibited continuous growth over the last few years as fundraising and investment returns fueled growth.
- Potential for significant expansion in fundraising success as senior leadership team focuses on investing in development infrastructure.
Standard & Poor's rating reflects:
- Good and improving demand for undergraduate programs and a comprehensive array of graduate and professional programs;
- A history of balanced financial operations, generating increased operating surpluses in fiscal 2007 and expected surplus operations for fiscal year 2008 coupled with good revenue diversity.
- A sizable endowment of $1.7 billion at June 30, 2008; and
- Historically manageable debt burden, with just $709 million of outstanding debt at June 30, 2007.