SJU Maintains Strong Bond Ratings with Major Agencies
Friday, May 10, 2019
Saint Joseph’s has maintained its ratings with the Standard & Poor’s and Fitch bond rating agencies, the University announced this week. Standard & Poor’s continues to rate the University with an ‘A-’ Stable Outlook, while Fitch rates the University with an ‘A’ Stable Outlook.
“Bonds are long-term lending agreements, and institutions are rated based on numerous factors, including the likelihood that the borrower will be able to repay them,” explains David Beaupré, Vice President for Finance and Administration & Treasurer. “The ratings can range from ‘AAA,’ the highest rating, to ‘D,’ which signifies to investors the bond is in default. Our ‘A’ rating is characterized as investment grade, which makes us attractive to investors because we have a low risk of default.”
Among other factors that the agencies take into account when assigning a bond rating to an institution are enrollment trends and strategies, financial operating performance, and stability within the leadership team.
The most recent rating from Standard & Poor’s included recognition of improved admissions selectivity, solid student retention, and improved financial resource ratios, all of which align to goals in the strategic plan, according to Beaupré.