Florida State becomes only university in Florida to earn AA+ rating from S&P

Florida State becomes only university in Florida to earn AA+ rating from S&P https://t.co/XR5YJzSzbZ

— Tallahassee Democrat (@TDOnline) June 7, 2019

https://www.tallahassee.com/story/news/2019/06/07/florida-state-university-becomes-only-university-florida-earn-aa-rating-s-p-global/1374548001/

The recognition places Florida State as one of only nine universities in the country with the S&P AA+ ranking.

What this means is the university is on sound financial footing and is a strong investment, according to bond finance standards.

“This upgrade from S&P is a clear indication of the continued improvement in the university’s financial strength,” said Kyle Clark, vice president for finance and administration at Florida State.

Clark informed members of the finance and business committee of FSU’s Board of Trustees during their Thursday meeting.

“This is a significant accomplishment for the university,” Clark said.

Municipal bond ratings measure the ability and willingness of an entity to pay its debt service on its financial obligations.

The ratings give investors information about the likelihood of bonds defaulting and provide a financial assessment of the credit worthiness of the entity involved.

Factors included in determining the ratings are: the state of the economy in Florida and the country; debt structure of Florida State University and its direct support organization; financial condition of the university and its components and Florida State’s management practices and governance.

Factors helping propel FSU, according the report, include high-quality student base and stable enrollment, financial support from the state, donor support and a strong budgetary discipline.