“Through the collective efforts of the Board of Trustees,
FAMU Foundation, University administrators, staff, faculty, student leaders,
and, of course, our committed alumni and friends, we are working tirelessly to
ensure the financial well-being and continued growth of this great
institution,” said President Larry Robinson. “We are grateful that
Moody’s recognizes our efforts and grateful to everyone who has played a role
in this positive outcome for FAMU.”
According to Moody’s, the stable outlook incorporates expectations of stabilizing enrollment, management’s commitment to maintaining operating equilibrium, and stable to growing state support. The stable outlook also reflects the absence of future borrowing plans or plans to reduce flexible reserves and is also predicated on a strong demand for the University’s “dormitory system.” Moody’s also indicates that the University has a reasonable cushion of flexible reserves relative to expenses, as well as relatively low debt.
“The elevation in the Moody’s Outlook Rating illustrates the
University’s commitment to sustaining enrollment growth as well as improving
our operational and financial performance,” said Wanda Ford, CFO and
interim vice president for Finance and Administration. “We are excited about
the University’s improvement in its rating of creditworthiness as it allows for
greater opportunities to support our students in academic achievement and
success.”
Moody’s Investors Service is a leading provider of credit
ratings, research, and risk analysis.
According to Moody’s factors that lead to an outlook
upgrade, include:
· Sustained
revenue growth combined with more effective enrollment management and enhanced
student demand
· Improved
operating performance with reduced volatility and operating cash flow margins
· Marked increase
in flexible reserves with spendable cash and investments to operating expenses
sustainably