Moody’s outlook for UMass improves
Calls acquisition of Mount Ida College ‘mildly credit positive’
A BOND RATING AGENCY issued a fairly rosy report Thursday on the five-campus University of Massachusetts system.
Moody’s Investors Service kept its UMass bond rating at Aa2, its third-highest level, but changed the outlook from negative to stable, suggesting the rating will remain stable for the next year to two years. The company said the improvement reflected expectations of steady enrollment, positive operating performance, and growth in financial resources.Although UMass officials often gripe about lackluster state support, the report said another factor in the agency’s decision was “solid operating and capital support” from the state. Government aid accounts for 22 percent of UMass revenues, while the charges assessed on the system’s 64,530 students represent 40 percent.
The report said UMass Amherst’s proposed acquisition of Mount Ida College in Newton would be “mildly credit positive” for the university system. It noted the acquisition would not have a material impact on the system.