STILLWATER, Okla., May 11, 2023
/PRNewswire/ -- Two leading national credit rating agencies
recently assigned AA- ratings to Oklahoma
State University following extensive financial reviews,
marking the eighth year in a row OSU has achieved the highest
credit rating of any higher education system in Oklahoma.
"Our outstanding credit score is a testament to the diligent
financial management of our university, reflecting the strong
commitment of the regents and leadership to responsible stewardship
of our resources, which ensures a bright future for our students
and faculty," said Jarold Callahan,
chairman of the OSU/A&M Board of Regents.
"We will continue to maintain a fiscally conservative approach
as we work to cement OSU as the nation's preeminent land-grant
university where students receive a quality, affordable and
meaningful education," said OSU President Kayse Shrum.
The latest S&P Global credit rating recognizes OSU's role as
a co-flagship higher education institution in Oklahoma and its R-1 Carnegie designation, and concludes the
largest university system in the state has a "very strong capacity
to meet financial commitments."
"We assessed OSU's enterprise profile as extremely strong,
characterized by its position as a co-flagship and land-grant
university in Oklahoma, with
rising enrollment, a longer-term trend of increasing applications
and improved graduation rates, and a solid fundraising and research
presence," the S&P Global report states.
Fitch Group, a fellow "big three credit rating agency," also
issued an AA- credit rating for OSU, noting the university's
stability and sound financial stewardship.
According to the latest report from Fitch, OSU's AA- rating is
supported by a trend of stable to modest enrollment
growth and modestly competitive demand metrics, consistent
with a flagship public research institution.
"While slightly more than one-third of OSU's operating revenue
consistently comes from student revenues, OSU has good revenue
diversity, benefiting from a growing research base, solid
fundraising and sizable foundation," the Fitch report states. "For
a public university, OSU retains a healthy ability to make tuition
and fee increases independently, although in practice, tuition and
fee increases are infrequently implemented to maintain
affordability in comparison to its Big 12 peers."
OSU Senior Vice President for Administration and Finance
Joe Weaver attributes the high
credit rating scores to fiscal responsibility and positive
enrollment trends.
"These high ratings reflect the financial health of the OSU
system, which continues to be a model for sustainable growth in
higher education," Weaver said.
Mitchell Emig, OSU director of
administration and finance business operations, said OSU's trend of
enrollment growth and competitive demand metrics are major factors
in these credit ratings. He also said that actions taken since
Fiscal Year 2017 have led to refinancing and retiring over
$562 million of debt, achieving a
cash flow savings of just over $93
million.
"Financial discipline helped us manage the pandemic and retain
our AA- ratings on OSU bonds," Emig said. "Our strong financial
position ensures continued access to financial markets and
affordable borrowing rates to support the imperatives outlined in
our strategic plan."
For the complete S&P and Fitch reports,
visit okla.st/creditrating23.
PHOTOS:
https://www.flickr.com/photos/ostatenews/sets/72177720308153463/
MEDIA CONTACT: Mack
Burke | Associate Director of Media Relations
| mack.burke_iv@okstate.edu | 405-744-5540
Oklahoma State University is a
modern land-grant university that prepares students for success.
OSU has more than 33,000 students across its five-campus system and
more than 25,000 on its combined Stillwater and Tulsa campuses, with students from all 50
states and more than 100 nations. Established in 1890, OSU has
graduated more than 275,000 students to serve the state of
Oklahoma, the nation and the
world.
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SOURCE Oklahoma State University