Credit agency re-issues ‘elite’ rating for Texas Tech System

Credit agency re-issues ‘elite’ rating for Texas Tech System
Texas Tech University System logo (Source: Tech system, Facebook)

LUBBOCK, Texas (KCBD) - Moody’s Investor Service announced on Thursday the Texas Tech University System received, once again, an elite-level credit rating.

The System is listed under an Aa1 long-term credit rating, which means its credit quality is strong and shows growth in key operating positions, according to a System news release.

Moody’s based this rating off of the System’s strong wealth profile, spendable cash, investments compared to debt and options, healthy fundraising efforts and steady enrollment growth.

The company also issued the rated because of philanthropy and fiscal stewardship throughout all four institutions within the System. Within the past 10 years Moody’s has given the system two rating upgrades, going from Aa3 to Aa2 from 2008-2010, then from Aa2 to Aa1 from 2015-2017.

“This is quite an accomplishment that places us among the top tier of colleges and universities nationwide,” said TTU System Vice Chancellor and Chief Financial Officer Gary Barnes, “It is especially gratifying considering the current negative financial outlook for the higher education sector as a whole through 2019. Our university CFOs, their teams and our investments team have done an excellent job positioning us for financial success.”

A more detailed look at Moody’s credit rating scale can be found here: Rating scales and definitions

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