Moody’s Investors Service has revised the outlook on the University of Washington’s Aaa general obligation bond rating to stable from negative.

The ratings agency also affirmed its Aaa issuer and long-term rating on the university, which has $1.6 billion of rated debt outstanding.

Moody’s put the university on its watchlist in August for a possible downgrade because it also placed the United States government’s Aaa rating on watch.

The agency reviewed the university’s links to the federal government in the event of a U.S. downgrade and found that it would be able to handle federal funding cuts.

Moody’s also said the university would be able to manage its planned additional debt load as well as pressures from Medicare and Medicaid.

It said the Aaa rating reflects the University of Washington’s flagship status in the state, as one of the largest research enterprises in the country, and as one of the two largest health care providers in the Seattle region.

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