The University of Virginia’s AAA bond rating was confirmed by the S&P bond rating agency recently, and verbally confirmed by Fitch. UVa is one of only four public universities in the country with the highest possible assessment of financial strength. What’s that rating worth to the university?
Board member and former finance chair Jim Murray had an answer for the Board of Visitors Thursday — $33 million. If all of UVa’s debt was rated two notches lower at a single A, as is the case with 63 public universities whose bonds S&P has examined, the difference in interest payments would be $33 million a year.
Through many years of turnover through Republican and Democratic administrations, protecting the AAA rating is one priority that every Board has shared. — JAB