On January 13, 2014, Standard & Poor’s Ratings Services withdrew all its ratings from the University of Colorado and University of Colorado Board of Regents’ debt at the request of the issuers. The University was last rated AA- by S&P and is currently rated Aa2 by Moody’s and AA+ by Fitch. Since the S&P ratings were withdrawn at the issuer’s request due to the expense of maintaining the ratings and not for credit related reasons, this change is not a cause for concern.
However, this decision is notable for an entity the size and profile of the University and underscores the importance of local credit research as prominent issuers continue to consolidate and withdraw their credit ratings.
In our most recent credit review conducted in October of 2013, we noted that the University’s market position and strategy have enabled the University to increase its net financial position in each of the last five fiscal years to approximately $3 billion, with $1 billion unrestricted.