Standard & Poor’s: U of M financial outlook revised to stable
The University of Minnesota’s financial ratings outlook has been revised to stable from negative, according to Standard & Poor’s Ratings Services (S&P). S&P also assigned its ‘AA’ long-term rating to bonds to be issued by the University later this month.
“All of us at the University of Minnesota have been working to focus more of our resources to delivering our mission and helping students succeed,” said U of M President Eric Kaler. “S&P’s outlook affirms that our commitment to mission and financial responsibility are the right things to do and I’m grateful.”
S&P assessed the University as “very strong, reflecting stable enrollment and robust demand, with very good selectivity and student quality.” Additionally, S&P noted the strength of the U’s financial profile.
The University plans to use net proceeds from the bonds to finance capital projects, including improvements to the Combined Heat and Power Plant, renovation of Tate Laboratory, other research facility improvements, and construction of a new Bell Museum, all on the Twin Cities campus, and construction of a Wellness Center on the Crookston campus.
This revised outlook reflects S&P applying new criteria, published in early January 2016, to the U of M’s rating request.