Moody’s Investors Service has upgraded St. Olaf College’s rating to A1 from A2 due to strong cash-flow margins, healthy liquidity and its plan to reduce its floating-rate risk.

The upgrade affects $83 million of debt issued through the Minnesota Higher Education Facilities Authority, including a $32 million refunding that will shift variable-rate debt to a fixed rate.

The college benefits from an established market position as a private, four-year liberal arts institution in Northfield with an enrollment of 3,000 students, continued stable demand, nearly $286 million in financial resources, and healthy operating performance.

Its challenges include competition from nearby facilities and a tuition and fee structure that is higher than other private state institutions.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.