The enrollment growth that followed the exit of former
President Elmira Mangum has helped Florida A&M University gain an improved outlook from Moody’s Investors Service. Moody’s has changed its outlook for
FAMU from “negative” under Mangum in 2016 to “stable” as of December 19,
2017.
“The stable outlook incorporates expectations of stabilizing
enrollment, management's commitment to maintaining operating equilibrium and stable
to growing state support,” a Moody’s press release stated.”
The press released added that: “The outlook also is also
predicated on strong demand for the dormitory system with ongoing debt service
coverage above 1.2x.”
Interim President Larry Robinson reversed the five year
enrollment decline in Fall 2017. FAMU now has 9,913 students, which is 299 more
than last year. The average GPA for the freshman class is 3.39. FAMU freshmen also posted
a 1077 average on the SAT, which is above the Florida average and the national
average.
Robinson has said that on-campus housing expansion is the #1 facilities priority for his administration.
Mangum began her presidency on April 1, 2014. Eight months
later, on December 1, 2014, Moody’s gave FAMU an “A3” rating on its Dormitory
Revenue Bonds, Series 2012A. But in 2016, Moody’s downgraded FAMU’s rating down
one level to “Baa1” with a “negative” outlook.
“The downgrade is based on a material deterioration of the
university’s fiscal position with prolonged enrollment declines and limited
revenue raising ability,” the 2016 press release stated.
FAMU lost $1.4 million in tuition and fees due to the
enrollment decline in 2015-2016 under Mangum. That total tuition and fee loses
from 2016-2017 haven’t been announced yet.