Moody’s Investors Service has affirmed the University of Ottawa’s long-term Aa2 debt rating, with a continued stable outlook. This action affects the University’s $150 million of Series A unsecured debentures issued last year.
The rating reflects the University’s continued enrollment growth and financial strength, countered by some uncertainty regarding higher education policy in Ontario under the under a new Liberal government.
Obligations rated Aa by Moody’s are judged to be of high quality and are subject to very low credit risk.
“The University continued its trend of financial strengthening in 2003, achieving another year of positive operations in the 2-3 percent range with additional growth in financial resources,” a Moody’s statement says. “We anticipate further improvement in financial reserves based on strong investment returns year to date, combined with the operating surplus.”
Moody’s expects that the University’s fundraising campaign will further support the University’s financial strength.
