Editors/News Directors: A radio actuality will be available for download on Friday about noon at http://www.troy.edu/news/radios . That actuality is attached to this email for your earlier use and the transcript follows end of release.

TROY – Moody’s Investors Services on Wednesday upgraded Troy University’s long-term bond rating to A1.

The median rating for public universities is A2.

“This rating indicates Moody’s continuing support of the University’s financial management,” said Dr. Doug Patterson, senior vice chancellor for administration.

The University’s yet-to-be-issued general student-fee revenue bonds – a $13 million issue – were also upgraded to A1.

“The proceeds from this issue will be used to finance the construction of a new College of Education building on the Troy Campus,” said Jim Bookout, vice chancellor for financial affairs.

Earlier this year, Moody’s had assigned an A3 rating to a $23 million student housing complex venture. That rating was revised upward to A2.

Moody’s said this weeks upgrade was based on the University’s “uncommonly strong operating performance” and continued resource growth. In a press release, the firm commented on the University’s enrollment growth in general, including in its distance-learning programs and on its practice of retaining surpluses as reserves

The investment rating firm also said the bonds are expected to receive municipal bond insurance, meaning they will carry the insurer’s rating of Aaa.

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Actuality Transcript (Jim Bookout, Troy University vice chancellor for financial affairs)

About 55 seconds in entirety

A bond rating increase from Moody’s Investors is significant to the institution. It shows the confidence they have in the financial management of the university and that we’re a good steward of the resources and we management our programs well. The rating is actually more attractive to the investors who will end up buying the bonds for their own personal portfolios – and as a result, our insurance costs to insure the bond against default are lower and the interest rates that we pay would be lower as a result of the confidence that Moody’s has in upgrading TROY from A2 to A1. It sends the message to all underwriters that TROY is in good financial standing and will attract more business in terms of financial arrangements with under institutions, other underwriters.