S&P Global Ratings released its most recent review of Alabama State University’s finances, upgrading the University’s outlook from negative to stable
In its report, Standard & Poor's (S&P) indicated that the upgrade is due to several factors, including the lack of vacancies on the University’s Board of Trustees and the hiring of Dr. Quinton T. Ross, Jr., as ASU’s 15th President, as well as the hiring of a new chief financial officer.
“We are pleased with the upgrade in our financial outlook by Standard and Poor’s,” said Ross. “The upgrade is especially encouraging when considering a recent report in the Chronicle of Higher Education that Moody’s Investors Service has changed its overall outlook for higher education from stable to negative, based on the sector being ‘highly exposed to changes in federal policy or funding.’
“Addressing the University’s finances is a priority of this administration and the ASU Board of Trustees. The upgrade shows that we are moving forward as a University and our commitment is to continue to make decisions that are fiscally sound with a goal of placing ASU on a firm financial footing,” Ross added.
S&P also announced that the agency has lowered its long-term rating for the University from “B” to “B-“.
"We want to emphasize that this downgrade in the credit rating is based on financial data from the fiscal year that ended in 2016,” said William Hopper, ASU’s interim vice president for Business and Finance. “S&P’s stable outlook is based on the stability of the Board of Trustees, the appointment of Dr. Ross and the direction the administration is taking.
Although the credit rating was reduced, the new administration has been addressing many of the concerns that were identified by S&P and is confident that we will improve our financial ratings in the future."
Posted By: Reginald Culpepper
Tuesday, March 6th 2018 at 2:32PM
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