Pacific receives stable outlook from fiscal rating agency
Moody's Investors Service this week reaffirmed University of the Pacific's A2 rating, confirming the university's financial outlook is stable.
Moody’s is a preeminent financial services firm that grades investments and issuers on creditworthiness.
“We’re pleased that Moody’s has continued to recognize Pacific’s long-term financial strategies and the efforts our leadership and many across the university have made to responsibly manage the university’s financial resources,” said Ken Mullen, vice president for business and finance.
Moody's cited Pacific's size of operations, diverse programs at three campus locations - Sacramento, San Francisco and Stockton - and program investments as key factors in the stable rating. Pacific has demonstrated an upward trend in enrollment with increases from fall 2016 through fall 2019. Moody's also noted the Pacific's strategic reductions in expenses, which led to a strengthening of the university's operating performance in the 2019 fiscal year.
Another factor in the rating was Pacific's robust "Leading with Purpose" fund raising campaign, which officially launched in 2017. The campaign has provided healthy donor support and has grown the university's endowment more in line with peers.
Pacific has held an A2 With a Stable Outlook rating since 2002, which signifies the university is a low credit risk for long-term debt and has a strong ability to repay short-term debt.