UAH Upgraded to A1

Moody’s Investors Service last week upgraded the University of Alabama in Huntsville’s general fee revenue bonds to A1 from A2 and also upgraded its student housing debt to A2 from A3. The higher rating, and a stable outlook, affects $56 million of outstanding rated debt. “The rating action reflects the university’s healthy growth of financial resources, strong research profile, and manageable additional borrowing plans,” said a report by Moody’s analyst Kimberly Tuby. The stable outlook on UAH’s general fee revenue bonds reflects Moody’s expectations that enrollment will continue to grow and that future borrowing plans will be accompanied by continued growth of financial resources and revenue to service the debt, Tuby’s report said. On the housing system debt, the stable outlook incorporates Moody’s expectation that the university will provide support to the housing system to balance operations.