ASU gets welcomed news from credit rating service

ASU gets welcomed news from credit rating service
ASU has been notified by Moody's that it's credit outlook has been upgraded. (Source: WSFA 12 News)

MONTGOMERY, Ala. (WSFA) - Alabama State University got some good news Wednesday when it learned credit rating service Moody’s has upgraded its outlook for the university.

Moody’s now says ASU’s outlook is stable and has affirmed its rating of Ba2 for the university’s general tuition and fee revenue bonds. It also affirmed a Ba3 rating on the Series 2005 lease revenue bonds.

A downgrade to a credit rating can make the interest rates on loans higher while an upgrade can make those interest rates lower, saving the university money.

University President, Dr. Quinton T. Ross, Jr., said having the “stable outlook” from Moody’s shows that ASU is continuing to move in the right direction and he explained “we will remain focused on improving the University’s financial health even as we deal with the impact of a global pandemic.”

ASU’s interim vice president for Business and Finance, William Hopper, said the upgrade is a welcome and encouraging change that is the result of a laser focus on improving ASU’s financial position.

“The reason that we’re improving is that we’re being good financial stewards of the University’s resources,” Hopper said, adding “the bottom line is we’re being very cautious with all our resources, and we’re looking for every opportunity to maximize those resources... while continuing to improve the educational environment and the services we provide to our students.”

Moody’s cited several “key drivers” for the improved outlook on ASU, including stable state operating support and a leadership team focused on fiscal strategies, as well federal funding that will provide fiscal flexibility amid the impacts of the COVID-19 pandemic.

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