Moody’s Investors Service has upgraded Illinois State University’s issuer and Auxiliary Facilities System (AFS) bond ratings to Baa1 from Baa2, and its Certificates of Participation (COPS) to Baa2 from Baa3, with a positive outlook.
“This rating upgrade by Moody’s continues to show the fiscal strength of Illinois State University and offers greater confidence to our existing debt investors and future lenders, either direct placements with banks or the public bond market,” said Vice President for Finance and Planning Dan Stephens. “These solid ratings will help Illinois State continue to attract lenders who can offer the most cost-effective interest rates and lending terms available in the market today”.
According to the recent Moody’s report: “The upgrade of Illinois State University’s (ISU) issuer rating to Baa1 reflects continued strengthening of the State of Illinois’ (Baa1 stable) fiscal condition with positive downstream effects to the university contributing to an improving operating environmentg
The report notes the greater stability provided by the State of Illinois’ FY 2023 budget that provides a 5 percent appropriation increase to Illinois State, as well as increased funding for the Monetary Award Program (MAP), which provides financial aid for students.
This latest news from Moody’s is part of continued positive news for Illinois State’s credit profile. Earlier this year, Moody’s revised Illinois State’s credit outlook to “positive” from “stable.” In December 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.