Colorado University announces upgraded bond rating

The University of Colorado's bond rating has been upgraded, indicating to investors financial stability for CU's current and future bonds, according to a Tuesday press release.

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"The upgrade to CU's rating not only demonstrates confidence in how we operate the university, but also will allow us to realize millions of dollars in interest cost savings in the coming years," said CU President Bruce D. Benson. "Our strategies for how we approach our key revenue streams, as well as our focus on efficiency in our operations, are reflected in this upgrade."

Moody's Investors Service listed increased private support, research, strategic positioning and ongoing tuition revenue as reasons for the increase.

There is only one rating category higher than what CU has been upgraded to, the press release said.

"The stable outlook reflects our expectations that CU will continue to record steady student demand and growth in student charges, strong research activity and flexibility to adjust to federal funding challenges, and substantial gift support," Moody's writes in the opinion. "CU's rating, which is now one rating grade above the state's Certificates of Participation rating, reflects the university's favorable revenue growth and diversity to offset state funding limitations."

Tribune Content Agency
Primary bond market Public finance Higher education bonds Colorado
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