Moody’s affirms Fairmont State University’s A2 stable outlook
In January, Dr. Mirta Martin began her tenure as president of Fairmont State University. She immediately set three main goals—enrollment, retention and fundraising. With targeted purposes laid out, all parts of the university began to diligently align their department’s activities with Martin’s vision. Today, those efforts are being acknowledged. Moody's Investors Service has affirmed Fairmont State University's stable outlook with A2 rating.
An A2 rating is given when assessed financial obligations are judged to have upper-medium credit quality and as-a-result are subject to low credit risk. According to a release from Moody’s, “The affirmation of the rating reflects Fairmont State University's positive operating performance with consistently strong cash flow margins. Liquidity, though softer in fiscal 2017, remains a strength of the university's credit profile especially given the university's conservative debt structure.”
While it may seem like a credit rating is an assessment of the Fairmont State business office, President Martin believes that every person on campus made an impact. “The hard work and dedication of every member of the falcon family plays a role in our stable outlook. Our employees have tightened budgets, been innovative with new cost saving measures, and responded energetically when we have tried to do more with less.”
Making this rating even stronger, is the national trend of instability in higher education ratings. In December, Moody’s revised their 2018 higher education outlook from stable to negative due to a softening of aggregate operating revenue that is not expected to keep pace with expense growth.
“Fairmont State is proud to stand as a leader in higher education across the country by demonstrating our ability to soar in an unstable environment,” said Martin.
The system of rating securities was originated by John Moody in 1909. The purpose of Moody's ratings is to provide investors with a simple system of gradation by which future relative creditworthiness of securities may be gauged.
Read Moody's full release, here.
Moody's Credit Rating
