Moody’s Ratings yesterday announced that it has affirmed the Aa2 issuer rating of the Mississippi Institutions of Higher Learning. In its release, Moody’s noted that the operating performance of IHL “remains sound, supported by steady state appropriations and MIHL’s strong financial oversight of its member institutions.”
“Affirmation of the Aa2 ratings on MIHL’s revenue bonds incorporates MIHL’s overall credit quality,” Moody’s stated. “The stable outlook reflects our expectations that MIHL, including UMMC, will continue to produce healthy operating performance while maintaining sound unrestricted liquidity.”
Moody’s did note factors that could lead to a downgrade of the rating, citing “material reduction in state support or increase in required state pension plan contributions” as a key factor. The report also mentioned that assessments of the public university system’s credit worthiness will include the approximately $1 billion of capital projects currently underway that are funded by public-private partnerships (P3s) and bonds.
The report from Moody’s reflects the work and leadership of the IHL Board of Trustees, along with the cooperative support from the system’s universities and state leadership, according to IHL Commissioner Al Rankins Jr.
“The financial strength of our university system is a critical cornerstone in the foundation of the educational missions of our universities,” Rankins said. “The Board of Trustees is committed to keeping that foundation strong and appreciates the support we have continued to receive from the Mississippi Legislature.”
