Moody's Affirms Augustana Bond Rating
The bond rating for Augustana College will stay at its current level, as rated by Moody's Investors Service.
And that means it's well managed and able to withstand future financial problems, according to Kent Barnds, Executive Vice President for External Relations.
Moody's says the Baa1 rating means Augustana is considered "medium-grade and subject to moderate credit risk."
Barnds says the age of the campus, investments, and improvements are all considered.
"One of the things Moody's felt was a strength of Augustana was the philanthropic support. Certainly Murry Gerber's generosity last year, and generosity from many, literally thousands, of alumni and friends makes a difference."
Barnds says that since the pandemic, the number of high school students choosing to go to college has decreased, which will affect all colleges and universities
"Moody's affirmation of Augustana's bond rating sends a really strong message about the fact that they believe that Augustana is well-managed and in a good financial position to withstand some of the difficulties ahead."
According to Moody's website, Augustana had $47 million of debt at the end 2022. However, it also say that as an instituation, Augustana appears to be financially stable.