MOODY'S UPGRADES MUHLENBERG COLLEGE CREDIT RATING
Moody's Investors Service has upgraded Muhlenberg College's credit rating to A1 from A2. The action affects $30 million of aggregate debt.Wednesday, January 30, 2002 10:44 AM
Moody's Investors Service has upgraded Muhlenberg College's credit rating to A1 from A2. The action affects $30 million of aggregate debt.
According to Moody's, the A1 rating carries a stable outlook and is based on the college's steady enrollment and rapidly improving student demand in a highly competitive market, excellent operating performance, and adequate balance sheet resources with additional growth expected through fundraising.
"The upgrade reinforces that the College is moving in the right direction in terms of demand (Admissions), financial health and strength," said Kent Dyer, the College's treasurer and vice president for finance.
The stable outlook reflects the rating agency's expectations of manageable debt levels, continued strong operating performance leading to comfortable debt service coverage, and stable enrollment in the context of strengthening student demand, according to Moody's.
"A better rating upgrade leads to cost savings," Dyer said, noting that the higher rating will earn a lower insurance premium and leads to a lower interest rate.
In April 2001, Muhlenberg College's bond rating was increased by Standard & Poor's from A to A+.
