The national credit rating service noted sound fiscal management policies and the University’s growing national reputation as markers that supported the upgrade.
Moody’s Investors Service announced Thursday that it had upgraded the University of Miami’s bond rating to A2, from A3, a significant boost that reflects the University’s positive gains in patient care revenue, operating performance, and liquidity.
The rating service, considered one of the top three credit rating services in the country, cited the University’s “management credibility and track record” as one of the key measures that lifted the rating. The service also noted patient care revenue growth, operating discipline, and sound financial policies to manage debt service as having a positive impact.
“The university’s expanding national reputation, favorable donor support prospects, and increasing total cash and investments which reached $2.7 billion in fiscal 2021 also bolster credit quality,” Moody’s said in its press release.
Jacqueline A. Travisano, executive vice president for business and finance and Chief Operating Officer of the University, said the Moody’s credit rating upgrade “validates our efforts included in the University’s Roadmap to Our New Century strategic plan to strengthen financial stability while enabling strategic investments, pursuing opportunities, and responding to challenges.”
“The University of Miami is a beacon of knowledge, innovation, research, and provides the highest quality patient care,” Travisano said. “The rating upgrade affirms that the University is on sound financial footing as we approach our centennial and is a testament to the dedication of our community to our beloved U.”
Moody’s outlook for the University is “stable.”