University of Missouri credit outlook looking ‘stable’

The outlook on the University of Missouri’s credit rating is stable, according to Moody’s Investor Service.

Moody’s graded the UM System’s credit as Aa1, the second-highest long-term credit rating an institution can receive.

In its credit rating report, Moody’s listed as strengths the university’s $3.4 billion in cash and investments, its profitable health care operations, and its reduced long-term liabilities brought on by changes to retiree health benefits.

As for negatives, analysts cited significant turnover in leadership positions, large pension liabilities and expected enrollment declines.

University leaders are projecting a 4 percent enrollment decline across the system and a 7 percent decline at the University of Missouri-Columbia during the 2016-17 school year, which could cost the university as much as $30 million in revenue.

Read more: St. Louis Post-Dispatch


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