Sacred Heart Earns Rating Affirmation from Moody’s, S&P

Good ratings mean lower interest rates on bonds

Moody’s Investors Service and S&P Global credit rating agency have reaffirmed their strong ratings for Sacred Heart University. The University earned an A3 rating from Moody’s for its fixed-rate revenue bonds, and S&P assigned SHU an A long-term rating. Bonds will be issued through the Connecticut Health and Educational Facilities Authority.

Ratings directly impact the interest rate SHU must pay on bonds that it issues to finance projects, such as new buildings.

The University’s S&P rating is due to “healthy enrollment and application growth, coupled with stable selectivity and retention,” according to the agency.

Moody’s said the assignment and affirmation of the A3 rating is supported by the University’s “excellent operating performance, strong liquidity and favorable student demand.”

Philip McCabe, SHU’s senior vice president for finance, said the rating isn’t something the University takes for granted. Since the pandemic began earlier this year, the S&P has downgraded ratings or outlooks for many higher education institutions. “Sacred Heart’s rating affirmation was a success for us,” McCabe said. “During a period when many schools are seeing a decrease in enrollment, SHU continues to grow.”

Sacred Heart recently welcomed its largest-ever incoming freshman class, which McCabe described as “a reflection of the extraordinary efforts of faculty and staff to recruit and retain students in a very challenging environment.”

He added that the University’s proactive approach to the pandemic since late February has positioned SHU to do as well as possible throughout the coronavirus crisis.