Fitch’s affirmation specifically made reference to $51.9 million in university revenue bonds, series 2011; and $31.9 million in university refunding revenue bonds, series 2010.
In the affirmation document, Fitch said the rating reflects the university’s “historically stable student enrollment and demand for auxiliary facilities.” The document also cited Marshall’s switch this year to zero-based budgeting, as well as the university’s “solid institutional profile” and “balance sheet strength,” saying it expects the institution to manage effectively through any cuts in state operating appropriations.
A solid bond rating makes debt issued by Marshall more attractive to investors.
Interim President Gary G. White said the ratings confirm the university’s continuing fiscal stability and are an indication of the Marshall community’s focus on responsible financial and operational planning in the face of several straight years of reduced state appropriations.
“This affirmation of the university’s bond ratings is a clear endorsement of Marshall’s financial standing and prudent planning,” he said. “Our Board of Governors has provided the necessary direction and expertise, while our faculty and staff have shown a true willingness to roll up their sleeves and work hard to help keep us on sound footing. I salute everyone who has had a role in helping to ensure our ongoing fiscal health so we can continue to serve our students and communities.”
Fitch Ratings is part of the Fitch Group, a global organization specializing in financial information services, with operations in more than 30 countries. It is located online at www.fitchratings.com.