Montana State University has retained its AA- credit rating from Standard & Poor’s Global, marking the highest rating the university has ever received for a consecutive year. The announcement was made on July 31 and reflects S&P Global’s confidence in the university’s ongoing stability.
“We assessed MSU’s enterprise risk profile as very strong,” the report’s authors wrote, highlighting the university’s stable management team, research reputation, and student body diversity. “We also assessed MSU’s financial risk profile as very strong, with good fiscal stewardship, positive margins on a full-accrual basis, a modest debt burden and growing financial resources.”
The report also noted Montana State University’s role as Montana’s land-grant institution focused on education, research, and community outreach. The university’s history of positive operating results and solid financial resources relative to expenses and debt service were cited as additional factors supporting the strong rating.
“Montana State University takes seriously its fiscal responsibilities to the public,” said Terry Leist, MSU’s vice president for administration and finance. “Maintaining this excellent rating reflects the strong financial position of our four MSU campuses combined.”
S&P described the outlook for MSU as stable. According to the report: “MSU will maintain a solid balance sheet for the rating with increased state support, conservative budgeting and only modest additional debt.” The agency expects that MSU will remain competitive among both in-state and out-of-state students.
Universities typically issue bonds to fund major projects such as construction. These bonds are purchased by investors who are repaid over time with interest. A high credit rating signals lower investment risk for bond buyers and allows institutions like MSU to secure lower interest rates when borrowing funds.
“Investors can use this information to feel secure and know that our credit rating is strong. They can see that MSU is well suited to meet its financial commitments as we build on our successes as an institution,” Leist said.
