Moody's Upgrades USM Bond Rating

ADELPHI, Md. (February 15, 2005) Moody's Investors Service has upgraded the University System of Maryland's (USM) long-term bond rating to Aa2 from Aa3. Moody's has assigned the Aa2 rating to $178.23 million of Auxiliary Facility and Tuition Revenue Bonds, 2005 Series A. Today is the expected sale date.

Approximately $50 million of this borrowing will be new money for a variety of projects throughout USM. The remainder will be used to refund outstanding debt.

In making the announcement, Moody's said the rating upgrade reflects the university system's strengths, including its:

  • Strong market position and tuition pricing power evidenced by enrollment growth and increasing student demand;
  • Consistently healthy operating performance and good debt service coverage, despite a challenging state funding environment.

Moody's also cited the stabilization of the state funding environment and expected long-term growth of operating appropriations from the Aaa-rated State of Maryland.

Contact: Anne Moultrie