Troy University News

December 17, 2003

Contact:
Dave Barron :
(334) 670-3196; dbarron@troy.edu

Office of University Relations
253 Adams Administration
Troy, AL 36082
(334) 670-3196
(334) 670-3274 (fax)

Moody's upgrades TSU's bond rating

   Moody's Investor's Service has given Troy State University its vote of confidence by upgrading the university's ratings outlook from stable to positive, according to TSU officials.
Documentation provided by the New York-based firm also shows that TSU has been assigned an A2 bond rating to a series of $7.9 million series of revenue bonds that will be used for the construction of a new academic building and the renovation of Clements Hall, a residence hall.
   “That we have received this evaluation from Moody's during what most experts have termed an economic downturn is good news for Troy State University,” according to Dr. Doug Patterson, Senior Vice President for Administration. “We work hard to ensure that Troy State University operates on sound financial principles and this is welcome news indeed.”
   According to Moody's, the ratings and outlook are based on four factors:
  1. “stable core enrollment and market positions;”
  2. positive results from entrepreneurial distance learning and satellite campus strategy,”
  3. manageable leverage levels relative to financial resources;” and
  4. “consistently positive operating performance despite no growth in state appropriations.
    “The positive outlook is based on expectations of continued enrollment growth and favorable operating performance offsetting the unstable state funding environment,” Moody's report said. “Moody's expects that Troy State's strategic management of the University College (the division that operates all TSU sites outside of Alabama) will continue to drive growth in both revenue and financial resources.”
    The new academic building to be funded by the bonds will be built between McCartha and Wallace halls on the main campus in Troy. It will feature four theater-style lecture halls and five high-tech classrooms. Plans are to complete the project in time for fall semester of 2005.