![]() Significant improvement in the adjusted debt leverage profile while sustaining operating performance and student market strength It also incorporates our expectations that it will take a measured approach to new strategic spending leading to relatively stable adjusted debt leverage.įACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS The stable outlook reflects Moody's expectations that the university will manage its operations accordingly to sustain debt service coverage above 3x. Through disciplined financial management practices, the university is poised to sustain its favorable operating performance and successfully execute its ambitious growth plans without further impairing its already elevated adjusted debt leverage profile.Īssignment and affirmation of Northeastern University's A1 revenue bond ratings are based on the issuer rating along with the general obligation characteristics of the bonds without the benefit of additional collateral or a mortgage pledge. While total cash and investments provide just moderate coverage of expenses relative to peer competitors, a strong unrestricted liquidity position supports good operating flexibility. A sustained trend of growing scale and wealth adds to credit strength, with total cash and investments and operating revenue amounting to a respective $2 billion and $1.5 billion in fiscal 2021. At fiscal end 2021, the university had total outstanding direct debt of $1.1 billion.Īffirmation of Northeastern University's A1 issuer rating incorporates its excellent brand and strategic positioning as a selective private university with strong student demand, good market differentiation and a growing research enterprise. Moody's has also affirmed the university's A1 issuer and outstanding revenue bond ratings. ![]() ![]() The bonds, to be issued through the Massachusetts Development Finance Agency, have an expected final maturity in fiscal 2043. New York, J- Moody's Investors Service has assigned an A1 to Northeastern University's (MA) proposed $393 million of Revenue Bonds, Northeastern University Issue, Series 2022. ![]()
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