Moody’s Investors Service affirmed Simmons College’s Baa1 rating, and revised its rating outlook for the Massachusetts institution to positive from stable. The move affects about $182 million in debt.
The rating reflects “solid operating performance and healthy cash flow providing robust coverage of debt service,” Moody’s said.
In revising the outlook, the rating agency cited expectations of continued strong operating performance along with cash flows that resulted in improving liquidity.
Counterbalancing these various factors, according to Moody’s analysts, are the heavy reliance on tuition revenue, the large amount of debt outstanding, and recent challenges in undergraduate enrollment.