ULM's bond rating affirmed, Officials say this is good news - KNOE 8 News; KNOE-TV; KNOE.com |

ULM's bond rating affirmed, Officials say this is good news

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Source: ULM Source: ULM

MONROE, La. (KNOE 8 News) - The University of Louisiana at Monroe had its A2 bond rating affirmed by Moody's Investors Service Wednesday. According to Moody's, A-rated bonds are judged to be upper-medium grade and are subject to low credit risk.

"This is good news," said ULM Chief Business Officer, Dr. Bill Graves. "We have worked hard for this affirmation as we face the battle of continuous cuts in state funding."

A report published by Moody's calls the university "stable," giving major credit to efforts by the administration to adjust to a reduction in state funding.

Moody's highlighted many of ULM's strengths, including, ULM's stabilization of enrollment in 2013; the university's reduced exposure to interest rate volatility and remarketing risk by refinancing variable rate debt to fixed 10 year terms; and the university's efforts to launch  a $54 million capital campaign to raise money for scholarships, faculty development, and facilities.

"This is a significant accomplishment in light of the financial challenges that we have faced over the last five years," said ULM President Dr. Nick J. Bruno. "While this is a testament to our commitment to keep ULM financially sound, the burden that has been placed on our faculty and staff cannot be underestimated."  

Bruno further stated, "Efforts to maintain our financial stability have resulted in no pay adjustments over a five year period for our faculty and staff; the loss of over 300 jobs, as well as the loss of some programs. In addition to five consecutive years of reductions to state appropriations, ULM has absorbed expenses that had been a responsibility of the state, such as employee retirement contributions and health care premiums, so this news is bittersweet."

 

Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis.

 

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