Florida State University continues to be a strong investment, according to the newest credit ratings released by S&P Global, Fitch, and Moody’s.
FSU has the highest-rated credit of any public university in the state of Florida and is one of only eight public universities in the United States with an AA+ rating or better from both S&P and Fitch.
“I’m very proud that we were reaffirmed at all of our existing credit levels,” said Kyle Clark, vice president for Finance and Administration. “I think that’s particularly good news in light of the economic, financial and operational consequences of the pandemic.”
“FSU’s leadership has done an outstanding job managing the challenges of COVID,” said Ben Watkins, director of the Florida Division of Bond Finance.
S&P affirmed Florida State University’s AA+ Rating and the various ratings for the university’s outstanding revenue bonds (AA- Housing, AA+ Parking, AA+ Wellness Center) with a stable outlook. In their report, S&P noted “an improvement in the university’s various demand metrics including selectivity, student quality, and graduation to levels comparable with peers along with continued operating surpluses and successful fundraising, which have resulted in healthy financial resources.”
Fitch affirmed FSU’s AA+ Rating and the AA Ratings for the university’s outstanding revenue bonds (Housing, Parking, Wellness Center, Research Foundation) with a stable outlook. The report reflected Fitch’s “expectation that the university will sustain adjusted cash flow margins, as defined in Fitch’s criteria, in line with historical trends, and that balance sheet strength will be maintained and improve over time.”
Moody’s maintained its Aa2 Rating on the university’s outstanding revenue bonds (Housing, Parking, Wellness Center) with a stable outlook. Their rating is based on the university’s “excellent strategic positioning as a prominent comprehensive university aided by strong operating and capital support from the State of Florida.” Moody’s also reported that FSU has experienced “strong student demand aided by academic program investments and will maintain its strong market position as a designated Preeminent State Research University.” Moody’s stable outlook for FSU “incorporates the expectation of strong operating performance and excellent student demand and strong coverage of debt service from pledged revenues.”