January 10, 2003
Moody's upgrades Purdue's credit ranking to top seven nationally
WEST LAFAYETTE, Ind. Moody's Investors Service has upgraded Purdue University's credit rating to Aa1 status, which places the university's credit worthiness among the top seven public universities nationally.
Moody's Investors Service, the global credit rating, research and risk analysis firm, announced the upgrade from Aa2 to Aa1 of Purdue's long-term debt rating on Dec. 26. The upgrade was part of a press release in conjunction with the issuance of $95 million in new revenue bonds for renovation and new construction for the residence hall system and refunding of existing debt. The firm also issued an outlook of "stable" for Purdue's higher credit rating.
"This rating means that when we go into the credit market for such things as facilities upgrades or new buildings, we receive a lower cost of debt service," said James S. Almond, Purdue's vice president of business services.
Almond calculates that with a $100 million bond issue, the higher debt rating could save up to $900,000 over the 25-year life of the issue.
Almond says there are a number of positive factors reflected in the upgrade.
"The upgrade reflects Purdue's momentum and direction in terms of quality of students, demand for our programs, the development of Discovery Park and the $1.3 billion Campaign for Purdue that continues to be successful in a difficult economic period," Almond said.
The Moody's report based its upgrade and stable outlook on Purdue's "strong resource base, robust operating performance and established market position with prominent academic and research programs."
With the rating increase, Purdue joins three other public universities Georgia Tech, Texas A&M and North Carolina with the Aa1 rating. There are only three public universities Michigan, Texas and Virginia with Moody's highest Aaa rating.
Writer: Mike Lillich, (765) 494-2077, firstname.lastname@example.org
Source: James S. Almond, (765) 494-9706, email@example.com
Purdue News Service: (765) 494-2096; firstname.lastname@example.org
Related Web site: