Samford University's A3 investment grade bond rating has been affirmed by Moody's Investors Service. This maintains the institution’s previous rating released in 2021 and is significant given that Moody’s industry outlook for higher education is negative.
Moody's Investors Service is a leading provider of credit ratings, research and risk analysis. According to Moody's, A-rated bonds are judged to be upper-medium grade and are subject to low credit risk.
Moody’s highlighted Samford’s positive student demand, operating performance and donor support. The report noted the university’s credit quality incorporates its very good brand as a moderately sized, faith-based private university with diverse academic offerings. It also notes that operating performance will remain sound underpinned by very good fiscal management including conservative budgeting and a proactive and anticipatory planning posture.
“No single measure captures the totality of Samford’s financial health, including our credit rating. On the other hand, a sustained indication of strength and stability such as Moody’s most recent rating does reflect on the cumulative effort of our administration, faculty, and staff, and the steady hand of leadership provided by Samford’s trustees,” said President Beck A. Taylor.
Offsetting credit factors include the university’s dependence on student tuition and the debt from the defined pension plan obligation.
For more information and to read the report, click here.