Moody's reaffirms Tech's AA1 credit rating - FOX34 Lubbock

Moody's reaffirms Tech's AA1 credit rating

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From Texas Tech University Systems:

The Texas Tech University System had its long-term credit rating of Aa1 reaffirmed by Moody’s Investors Service, the corporation announced last week (June 25).

The TTU System received an upgrade to Aa1 Stable in 2015, received an Aa1 rating in 2017, 2019 and again this year. Moody’s is the latest of the influential credit rating agencies to rate the TTU System with an elite-level rating.

“We are proud of this recognition — one that unequivocally places us among the top tier of higher education institutions in the country,” said Gary Barnes, vice chancellor and chief financial officer of the TTU System. This accomplishment wouldn’t be possible without the collaboration, expertise and teamwork among our CFOs across the system and our investment team.”

During the past 11 years, Moody’s has given the TTU System two rating category updates from Aa3 to Aa2 (2008-2010) and from Aa2 to Aa1 (2015-17).

Moody’s cites the reaffirmation credit rating is due to the TTU System’s excellent strategic positioning which will enable it to withstand near term effects from the coronavirus pandemic. The corporation also lists the TTU System’s sizable and growing $2 billion diverse scope of operations, with robust operating, debt service and capital support as key components of the positive rating.

“This is fantastic news and demonstrates the quality of leadership we have guiding our financial operations and strategic investments across the Texas Tech University System,” said Tedd L. Mitchell, M.D., chancellor of the TTU System. “I’d like to congratulate System CFO Gary Barnes, our university CFOs and financial leadership teams, along with our investment team for building a strategic approach that supports the missions of our universities.”

Moody’s also touts the TTU System’s steady donor support for capital and student financial aid, solid wealth of $2.6 billion and spendable cash and investments of $1.8 billion.

The TTU System also has received back-to-back AA+ ratings by Standard & Poor’s, and Fitch Ratings reaffirmed the TTU System with an AA+ rating in 2018.

 

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