Centre College receives favorable bond rating as sector bounces back
S&P Global has reaffirmed Centre College’s long-term bond rating with an “A” grade this month.
S&P Global has reaffirmed Centre College’s long-term bond rating with an “A” grade this month. Centre’s Chief Financial Officer Brian Hutzley said Centre’s “A” rating means the college is in a strong position to meet its financial commitments.
S&P Global, a credit rating agency, publishes financial research and analysis on bonds and issues credit ratings for the debt of public and private companies. In January, S&P upgraded the global rating for the nonprofit higher education sector to “stable” after four years of negative outlooks.
“An ‘A’ rating through the pandemic showcases the College’s strength financially,” Hutzley said. “A continued history of fiscal discipline helps our rating and gives us opportunity for growth.”
Better ratings mean better credit and lower interest rates, Hutzley said. The S&P report assessed Centre’s enterprise profile as “strong, characterized by its strong student and faculty quality, strong retention, and improving selectivity.”
The College’s financial profile was also strong, “characterized by its solid and growing available resources and successful fundraising, offset by an elevated maximum annual debt service burden.”