Strong enrollment, financial health improve ISU's credit outlook
At a time many colleges and universities are under increased financial pressure, a credit profile agency has upgraded the rating for Illinois State University. S&P Global Ratings has changed the school's outlook from stable to positive on ISU's A- rating.
That's based on strong enrollment and financial health, with S&P noting ISU actually has grown its financial resources in spite of the pandemic.
"The positive outlook reflects ISU’s ability to consistently generate full accrual surpluses despite the pressures of the pandemic and even state funding challenges prior to that, as well as its growth in financial resources, which we expect to continue," S&P states in its report.
ISU Vice President for Finance and Planning Dan Stephens said that is great news for current debt investors and future lenders in either direct placement with banks, or in the public bond market.
“This will help Illinois State to continue to attract lenders who can offer low interest rates, given external financial conditions.”