Moody's Investors Service said it has upgraded Boston University's long-term debt rating to A1 from A2.
The outlook has been revised to stable from positive at the higher rating level. The rating action affects $1.1 billion of rated debt.
The upgrade to A1 reflects BU's sustained improvement in its overall market, academic, and research reputations coupled with growth of philanthropy in the context of the university's first-ever comprehensive fundraising campaign.
Key credit strengths include BU's role as a large, urban private research university with diversified enrollment, consistently positive operating performance, and improved governance practices. These credit strengths are counterbalanced by a relatively leveraged balance sheet, complex debt structure, and high net tuition per student, which may face constrained growth in light of increased price sensitivity of the student market.
