Moody’s Investor Services has raised West Virginia University’s credit rating from A1 to Aa3. The change is due to Moody’s recent recalibration of the rating for many public higher education institutions.
Moody’s outlook for WVU remains “Stable.” Moody’s raising of West Virginia University’s credit rating to Aa3 affirms that West Virginia University is effectively managing its limited resources and is committed to maintaining a positive financial position.
“This is great news, especially in the context of the past year’s economy,” President James P. Clements said. “The rating is an external validation of WVU’s sound financial position and prudent fiscal management.”
Moody’s defines Aa3 municipal ratings as demonstrating very strong creditworthiness relative to other US municipal or tax-exempt issuers or issues. An A1 rating is representative of above-average creditworthiness relative to other US municipal or tax-exempt issuers or issues.
A higher credit rating reduces the potential cost for the University to borrow money by reducing the interest rate it has to pay.
“We welcome this affirmation of WVU’s strong financial management and overall financial strength,” said Narvel Weese, vice president of administration and finance. “This also underscores the University’s stable position as we move into some uncertain waters in the upcoming years.”
Moody’s last affirmed WVU’s rating and outlook in January 2008.
CONTACT: News and Information Services
Follow @WVUToday on Twitter.