Moody’s Investors Service gives UM System high rating, but outlook negative

According to Moody’s Investors Service, a credit rating services company, the University of Missouri System holds a high-grade Aa1 credit rating, keeping the University among an elite group of institutions. Moody’s has also revised the rating outlook to negative from stable.

“We are pleased with the Aa1 rating from Moody’s but also recognize the financial challenges that need to be addressed with respect to enrollment declines and cuts in state funding,” UM System President Mun Choi said in the announcement. “The University of Missouri is already putting effective plans into action to increase revenues and lower costs throughout the UM System. Strategic investments in student and faculty success are top priorities on each of our four campuses as we remain focused on our mission of teaching, research and engagement.”

According to the announcement, Moody’s said that the UM System strengths include:

New leadership with clearly identified plan to address enrollment and state funding challenges;
Essential provider of education and health care services for State of Missouri;
Broad diversification of revenues;
Strong liquidity profile;
Strong UM Health Care performance; and
Continued successful fundraising efforts.