Texas Tech University System Receives Strong Credit Ratings Ahead of Bond Issuance
The Texas Tech University System is making waves in the financial world this week as it prepares to issue taxable and tax-exempt revenue finance system (RFS) bonds. With strong credit ratings from top organizations like Moody’s Investor Service, Fitch Ratings, and Kroll Bond Rating Agency, the System is set to fund approximately $270 million in capital projects throughout its institutions.
Chancellor Tedd L. Mitchell expressed his excitement about the upcoming bond issuance, highlighting the System’s commitment to a conservative fiscal approach that has consistently garnered elite ratings. The Aa1 rating from Moody’s, AA+ ratings from Fitch and Kroll, and the stable outlook assigned by each organization make the bonds an attractive option for investors.
This marks the ninth consecutive year that Fitch Ratings has given the TTU System an AA+ rating and the eighth year for Moody’s. These ratings solidify the System’s position among the nation’s top institutions for financial strength and practices, with only 26 public higher education institutions in the U.S. receiving a rating of AA+/Aa1 or better.
The ratings reflect the TTU System’s excellence in various areas, including enrollment growth, philanthropic support, endowment and investment balances, state funding, diverse operations, and steady capital support from the State of Texas. The stable outlook is particularly significant in a time when higher education institutions are facing challenges in maintaining consistent enrollment projections.
With approximately 63,000 students enrolled across its five component universities, the TTU System is poised for continued financial success. Vice Chancellor and CFO James Mauldin credited the financial experts at the System and university CFOs for their work in securing quality ratings from top credit organizations.
Earlier this spring, S&P Global Ratings reaffirmed the TTU System’s long-term credit rating of AA+ with a stable outlook. The System’s strong financial standing and commitment to excellence position it well for future success.
Overall, the Texas Tech University System’s strong credit ratings and upcoming bond issuance demonstrate its financial stability and commitment to excellence in higher education. Investors and stakeholders can be confident in the System’s ability to manage debt efficiently and continue its track record of success.
