Moody's Investors Service has upgraded the long-term rating on Nova Southeastern University, Fla.'s bonds to Baa1 from, Baa2 with a positive outlook.
The rating upgrade is driven by the university's consistently positive operating performance and, reduced liquidity risk due to debt structure modifications. The rating outlook is revised to stable from positive.
The rating upgrade is driven by further considerable improvement in university's financial profile, underpinned by continuation of solid cash flows and improvement in the debt structure.
The Baa1 rating is based on the university's large, diversified enrollment base; flexible expense structure which enables the university to programmatically adjust to changes in demand, and strong record of cash flow.
This is offset by relatively thin financial resources base relative to operations and debt.
The university's entrepreneurial management culture is evident in the university's successful growth of enrollment and programs, but also introduces some risks as the university invests in some ventures with more mixed results. Also factored in is the university's possible near term issuance of $100 million fixed rate bonds.