Capilouto: Strong ratings, confidence in our future
LEXINGTON, Ky. (November 10, 2021) – University of Kentucky President Eli Capilouto briefed the campus community on the college’s credit rating in a message sent this morning (Wednesday, November 10).
I write to you often to praise the remarkable accomplishments of this place and our people.
Others across the country are also taking note of your work and the efforts of our community.
Earlier this week, one of the nation’s leading credit rating agencies – Standard & Poor’s (S&P) – announced an upgrade to the UK bond rating outlook: AA + on general reception bonds, at place of AA. Other ratings within our bond portfolio have also been upgraded. This is the second such improvement in our credit rating since 2015, which is remarkable at a time when many universities are struggling to maintain a stable financial outlook.
Credit rating reports might otherwise be a dry read. But whether it’s buying a home or getting debt for long-term construction of facilities, strong credit scores positively impact your ability to make continued progress in earning money. ‘financial support for the necessary investments.
They are also noted by our state-level partner policymakers – as well as donors here and across the country – who understand that an investment in the University of Kentucky is good for the future of the state. .
In an important sense, the ratings reflect a vote of confidence in our operations and the future prospects of our institution.
As S&P stated in its report on our rating outlook:
“The rating reflects our perspective on the very strong business and extremely strong financial profile of the UK, characterized by a healthy market position and a positive trend of increasing full-time equivalent enrollments by one year. to the other with relatively favorable retention and graduation rates, very large financial operating surpluses, good income diversity largely due to UKHC, excellent financial resources and modest debt and liabilities potential with a low debt burden. Furthermore, in our view the management and governance of the UK is a prime example and as Kentucky’s flagship higher education institution, the university enjoys Commonwealth support for its operations and for limited capital needs, while these needs are also met, in part, by very strong philanthropic support.
It’s strong language that reflects the tireless and exemplary work of people across this institution – from the staff who support and from the professors who teach our students to a nationally recognized healthcare system that is not only in financial growth, but increasing in size to meet the needs of our Commonwealths.
And, of course, there is the hard work of unsung heroes in every corner of campus, in our finance and administration areas, who manage the UK budget and operations so effectively. This work – and sound management – has enabled us over the past decade to continue to make progress on the critical infrastructure needs we have on our campus and to support our commitment to the future of the Commonwealth as a ‘university for Kentucky.
On days like this and so many others, I remind myself – constantly and convincingly – that there is nothing we cannot do as a community. I am happy to be in a place and to be part of a community that embraces our power in so many ways.