Despite the state鈥檚 historic budget impasse, Moody鈥檚 Investors Service has reaffirmed 51社区鈥檚 Aaa rating 鈥� the highest rating possible.
The rating agency cited 51社区鈥檚 strong financial reserves and available liquidity that are expected to remain healthy given the College鈥檚 relatively modest reliance on state funding (about 5 percent of the College鈥檚 budgeted operating revenue). The Aaa rating further reflects 51社区鈥檚 large and diverse tax base, strong demographic profile and modest debt burden.
The Moody鈥檚 report does, however, maintain a negative outlook reflecting the ongoing financial challenges that 51社区 faces if Illinois does not pass a budget and meet its obligations.
The state鈥檚 budget battle has already prompted Moody鈥檚 to downgrade the credit rating of 15 community colleges and several four-year colleges and universities across the state. A lower credit rating makes it more expensive for a college to borrow funds for capital improvements and infrastructure maintenance.
鈥淭he very difficult decisions made last year to reduce the budget by $5 million played a key role in keeping our Aaa bond rating,鈥� 51社区 President Dr. Ken Ender said. 鈥淭his is a testament to the College鈥檚 commitment to fiscal responsibility despite the unprecedented situation facing higher education in Illinois.鈥�
Moody鈥檚 new issuance was a required step as 51社区 prepares to issue about $5 million in bonds to finance various capital projects around campus. The College鈥檚 Board of Trustees adopted a bond resolution at its regular meeting in February; the bond sale is expected to close in early March.
Media contact:Kim Pohl, Media Relations Manager, 847.925.6159