Moody's Investors Service has assigned an Aa3 rating to Wayne State University's proposed $117 million General Revenue Bonds to be issued through the Board of Governors. Moody's has affirmed the Aa3 ratings on approximately $300 million of outstanding parity debt and revised the outlook to stable from negative.
The Moody’s bond rating is an indicator of confidence in the university’s future worth for investors.
In its report, Moody’s noted that Wayne State’s Aa3 rating is “supported by its role as a public, comprehensive urban university serving a significant educational and economic development function for the city of Detroit.” The report also pointed out that a “comprehensive array of programs, relatively steady student demand and a sizeable research program bolster the university's overall scale. Total wealth levels are significant, driven by above average fundraising.”
The report also noted that the revision of the outlook to stable reflects the university’s increasing financial reserves and improving operating performance, among other factors.
“This encouraging report further affirms our financial strength and overall standing as a major research university,” said William Decatur, vice president for finance and business operations. “It also places the university in a favorable position for financial growth and opportunities.”
Proceeds from the bond issuance, as approved by the Board of Governors, will go toward financing or partially financing multiple projects at Wayne State, including:
- Construction, furnishing and equipping of the new Mike Ilitch School of Business facility
- Renovation and expansion of the Hillberry Theatre
- Renovation and repurposing of the Science and Engineering Laboratory
- Construction of a new data center
- Construction of a weight room
- Construction and relocation of the Campus Health Center
- Construction of an art gallery
- Electrical upgrades to various buildings on campus