{"id":204384,"date":"2024-09-30T13:55:10","date_gmt":"2024-09-30T23:55:10","guid":{"rendered":"https:\/\/www.hawaii.edu\/news\/?p=204384"},"modified":"2024-10-01T09:19:53","modified_gmt":"2024-10-01T19:19:53","slug":"uh-earns-strong-bond-rating-2024","status":"publish","type":"post","link":"https:\/\/www.hawaii.edu\/news\/2024\/09\/30\/uh-earns-strong-bond-rating-2024\/","title":{"rendered":"UH<\/abbr> earns strong bond rating, saving millions of dollars"},"content":{"rendered":"Reading time: <\/span> 2<\/span> minutes<\/span><\/span>

\"Bachman<\/p>\n

The University of Â鶹´«Ã½<\/span> recently concluded its annual review with credit rating agencies of financial metrics as part of a process known as “annual surveillance.” The two credit rating agencies that rate UH<\/abbr>\u2019s outstanding bonds, Moody\u2019s Investor Service and Fitch Ratings, both re-affirmed the university\u2019s ratings at “Aa3<\/abbr>” and “AA<\/abbr>” respectively. Both agencies also believe the forward financial outlook for UH<\/abbr> M\u0101noa is stable.<\/p>\n

The ratings inform investors who either hold existing bond debt of the university or are considering investing in University of Â鶹´«Ã½<\/span> bonds in the future. The ratings are an important factor for potentially lower interest rates when the university issues future debt, which could translate into saving UH<\/abbr> millions of dollars in upcoming years.<\/p>\n

Both ratings agencies attributed UH<\/abbr>\u2019s stable outlook to well-balanced operations with margins sufficient for debt service and capital investment. The University of Â鶹´«Ã½<\/span> currently has more than $396 million in outstanding revenue bonds. Annual debt service of the university can exceed more than $30 million annually through 2041.<\/p>\n

“This strong rating from the agencies shows the solid belief in our institution and the current trajectory of a number of factors, including increasing enrollment, positive state funding, record extramural funding, and sound financial decisions,” Vice President for Budget and Finance and CFO<\/abbr> Kalbert Young said. “When the university sells bonds in the future to fund capital improvement projects these ratings can help to secure lower interest rates at that time, thereby reducing the financial burden of the university and ultimately students.”<\/p>\n

UH<\/abbr>\u2019s financial comptroller Amy Kunz said, “Since the financial crisis in the early 2000s (2007–08), financial institutions and credit agencies have been much more diligent with elevated scrutiny in their examination of financial surety. The University of Â鶹´«Ã½<\/span> has equally been improving its fiscal management and financial position. These ratings affirm our efforts and the substantial positive progress.”<\/p>\n

Young pointed out that UH<\/abbr> has worked hard to lower its debt and increase cash reserves, which are looked at closely when the agencies rate institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"

UH<\/abbr> holds ratings of “Aa3<\/abbr>” and “AA<\/abbr>” with a positive financial outlook.<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1193],"tags":[1161,947],"class_list":["post-204384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-administrative","tag-finance","tag-uh-system","entry","has-media"],"aioseo_notices":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/posts\/204384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/comments?post=204384"}],"version-history":[{"count":6,"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/posts\/204384\/revisions"}],"predecessor-version":[{"id":204416,"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/posts\/204384\/revisions\/204416"}],"wp:attachment":[{"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/media?parent=204384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/categories?post=204384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hawaii.edu\/news\/wp-json\/wp\/v2\/tags?post=204384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}