August 09, 2019
The University of New England recently received a revised financial outlook rating from Moody’s Investors Service, one of the top three credit rating agencies in the U.S. While the University maintained its financial rating of A3, its financial outlook has been elevated from “stable” to “positive,” the highest outlook rating that an institution can receive.
According to Moody’s credit report, the revision was “driven by a material strengthening of [UNE’s] financial position that [Moody’s] expect[s] to continue.” The report highlights UNE’s “consistently robust operating performance and steady revenue growth,” and it also credits a steady improvement in UNE’s coverage of financial reserves to debt.
“To receive an upgrade in our financial outlook from Moody’s during a time that has been particularly difficult financially for many institutions of higher education is significant,” said UNE President James Herbert. “It’s a testament to the institution’s sound financial leadership and a confirmation of a secure future for the University.”
UNE’s Senior Vice President of Finance and Administration Nicole Trufant agreed. “The change from an outlook rating of ‘stable’ to ‘positive’ reflects Moody’s acknowledgement of UNE’s sound budgeting practices, strategic enrollment management, and robust operating performance,“ she remarked, adding, “The University is well positioned for the future.”
The Moody’s report listed several of UNE’s institutional assets, including steady student demand, strong debt affordability, enrollment diversity, and high demand programs.