Illinois State University continues to receive positive news about its credit profile.
Moody’s Investors Service has revised Illinois State’s outlook to “positive” from “stable.” Moody’s also affirmed the University’s outstanding Baa2 issuer rating, Baa2 Auxiliary Facilities System bonds, and Baa3 Certificates of Participation.
“The recent report by Moody’s is another bit of good news regarding Illinois State’s already strong credit profile,” said Vice President for Finance and Planning Dan Stephens. “This provides further assurance to our current debt investors and also helps the University attract other lending institutions that can offer us low interest rates to help fund our major capital projects.”
According to the recent Moody’s report for Illinois State: “The outlook revision to positive reflects ISU’s consistently positive operating performance through what has been a highly challenging operating environment related to prior state funding inconsistencies followed by the coronavirus pandemic. Management has established a strong track record of budgetary alignment while improving the University’s financial flexibility through the growth of its unrestricted liquidity.”
Moody’s also based its positive outlook on the improving credit quality of the State of Illinois, noting “prospects for continued on time payments from the state and growth in operating appropriations in the near-term.”
In December of 2021, S&P Global Ratings affirmed the University’s solid A- rating category on bonds issued for the University and changed the outlook from “stable” to “positive” based on the University’s strong enrollment and financial health.