Moody’s Investors Service has assigned the university an A2 credit rating, citing its outlook as “stable.” The influential credit-rating agency extensively analyzed Marquette University, reviewing a wide variety of financial indicators, including net tuition revenue, philanthropic support and debt ratios.
Moody’s says the stable outlook is based on expectations of at least breakeven operating performance, maintenance of favorable debt affordability and no material spend down of reserves.
“Retaining our A2 credit rating is a positive indication that the university is on solid financial footing,” said Joel Pogodzinski, senior vice president and chief operating officer. “With the challenges facing the higher education industry, it’s critical that we continue to operate from a place of fiscal strength so that through our strategic plan, we can decide as an institution how to best move forward, rather than let the market dictate that for us.”
According to Moody’s, the following factors contributed positively to Marquette’s A2 rating:
- Established urban, comprehensive Jesuit university located in the City of Milwaukee
- Sizeable operating revenue
- Sound student demand evidenced by continued, if slowing, net tuition revenue growth
- Strong three-year average philanthropic gift revenue
- Demonstrated careful planning and fiscal oversight, an active approach to capital investment, and a conservative debt structure
More on Moody’s and its credit rating methodologies is available at moodys.com.