Citing Villanova’s strong financial position and rising national profile, the credit rating agency Standard & Poor’s recently upgraded the University’s bond rating to AA-.
“This upgrade demonstrates that the University is financially stable, sustainable and a prudent steward of its resources,” says Kenneth G. Valosky ’82 VSB, executive vice president. “We are on solid ground as we continue to increase our commitment to providing educational access through financial aid and enhance our academic programs and campus facilities.”
An upgraded bond rating from S&P results from an independent assessment of the University’s financial position, and it signals to investors that Villanova’s bonds are a high-quality investment. The higher rating makes the University’s bonds more attractive to investors, which in turn should result in increased demand, favorable pricing and reduced interest costs on future bond issues.
Moody’s, another independent assessor of institutions’ credit-worthiness, also recently reaffirmed Villanova’s A1 rating and upgraded its outlook from stable to positive.
In reviewing Villanova for these changes, both agencies considered the University’s strong national profile; its ability to recruit increasing numbers of high-achieving students and its growing selectivity; its strong operating practices and prudent financial management; and its increasing financial resources, boosted by the success of the recently concluded capital campaign, which raised more than $760 million.