University of Montevallo’s Standard and Poor rating upgraded to ‘A’Published 1:17pm Tuesday, November 12, 2013
FROM STAFF REPORTS
MONTEVALLO – The University of Montevallo’s Standard and Poor long-term rating was recently upgraded from “A-“ to “A” because of the university’s ability to “utilize financial resources that will help meet the needs of its students,” according to a University of Montevallo press release.
When determining the ratings, Standard and Poor looks for strong financial resources, a moderate maximum annual debt service burden, good revenue diversity and a history of avoiding the use of and increasing revenues, according to the press release.
UM was also identified as serving a “niche market” as the only public liberal arts university in Alabama. Growing enrollment was also a factor in the university’s upgraded rating, with the report citing that freshman applications have increased by 22 percent within the last four years.
“In a time of economic challenge when many colleges and universities are being downgraded, we are pleased to have received the upgrade,” said DeAnna Smith, vice president for business affairs at UM. “I’m privileged to work with a campus community who are excellent stewards of University resources and have embraced our financial health goals.
“To be able to continue to offer the high-quality education for which Montevallo is known, while enduring the sharp reductions in state funding, and still be recognized for our financial health is gratifying.”