Moody’s Investors Service has affirmed Rensselaer’s creditworthiness as A3, citing its large scale of operations, healthy student demand for its technology-oriented programs, growing net tuition revenue, strong fundraising, and President Shirley Ann Jackson’s transformative leadership.
The rating measures an institution’s ability to repay borrowed capital; the higher the rating, the less it costs to borrow. Moody’s ratings range from Aaa to C, with numbers added within each grade for further differentiation.
The Moody’s report on Rensselaer’s credit rating is a strong endorsement of Rensselaer’s market-relevant transformation and “strongly positive” operating performance. The report cites as credit strengths the large scale of operations with over $400 million in revenue, which provides economies of scale; consistently strong fundraising under the leadership of a long-standing president; and improved operating performance with strongly positive cash flows expected to continue.
The stable outlook reflects expectations that Rensselaer will maintain its solid student demand, strongly positive operating performance, and debt service coverage. “RPI will continue to achieve sound operating performance given its dedicated fiscal oversight and revenue growth,” Moody’s wrote.
According to the Moody’s report, “RPI’s strategic positioning is very good given its student market, consistent investment in facilities, and steady improvement in market reputation and profile. Its diversified programmatic offerings provide broad stability in the event of a downturn in any single area. The Institute’s market profile continues to strengthen under the leadership of a transformative president, as evidenced by expanded geographic diversification of the student body, improving academic caliber of entering students, application increases, while maintaining a very high student retention rate.”
The report also cited the strong leadership team, which is making investments to improve long-term strategic positioning. “RPI benefits from a strong senior leadership team and stable board composition, with a forward-looking focus on growing and adapting its business and continually improving the Institute’s brand.”