West Virginia University remains a low credit risk, according to Standard&Poors.
S&P this week assigned a single A-plus rating to $35.15 million in revenue bonds the University System of West Virginia Board of Trustees plans to sell Wednesday, June 7, on behalf of WVU . This is the same bond rating WVU has had since 1997.
The rating reflects the Universitys flagship status and strong level of state support, according to the bond rating agency. Other rating factors included WVUs position as the only research and doctoral level land-grant institution in the state; consistently positive operating results; and adequate unrestricted fund balances bolstered by a growing independent foundation.
“We are pleased that Standard and Poors continues to recognize the fiscal strength of West Virginia University and the state of West Virginia in assigning this favorable rating to our upcoming bond issue,”said Scott Kelley, vice president of administration and finance at WVU .”Having a solid rate saves us money because it allows us to borrow at a lower cost.”
The bond issue, Kelley said, is to pay for ongoing building projects on the WVU campus.
S&P indicated that the challenges facing WVU include managing an increased debt burden associated with a capital building plan in excess of $200 million and reversing declining enrollment trends.
Despite the challenges, the agency called WVUs credit outlook”stable.”
“The outlook on both the system bonds and WVUs bonds mirrors the state of West Virginias outlook, and also anticipates continued solid state support and limited additional bonding needs,”S&P said.