According to two national credit agencies, Loyola University is in strong financial standings.

Loyola received an A1 rating from Moody’s Investor Services for its 2010 series revenue bonds.

This means, as an investment grade bond, Loyola’s 2010 series revenue bonds are an “upper-medium grade” bond.

This is defined as a bond that is subject to “low credit risk,” but could potentially be susceptible to impairment in the long-term.

This bond is ranked in the top tier of the overall ranking system.

The second credit agency, Standard and Poor’s Rating Services, gave Loyola A+ long-term ranking for the same bond.

This again is an “upper-medium grade” ranking but the bond is subject to risk depending on economic standings.

Bond ratings determine the cost of capital for Loyola when the university decides to borrow money. It is comparable to a personal credit score.

The Louisiana State Bond Commission issued $35 million in revenue bonds to capital improvements to the university such as the recent renovations on campus.

“The strong rating will get us a much better interest rate when we sell bonds (for construction),” said university president, the Rev. Kevin Wildes, S.J. in an e-mail.

“The stronger your ratings, the lower your interest. In making their determination they looked at enrollment patterns and the strong fiscal management of the university.”

Both credit agencies accredit the high ratings to Loyola’s strong leadership team; financial planning, management and resources; increases in student enrollment; a healthy endowment; and improved fundraising efforts.

The ratings show the agencies’ expectation that the university will maintain healthy liquidity and continue to improve enrollment trends and operating performance.

University president, the Rev. Kevin Wildes, S.J., said in a university press release that these improved financial ratings mean continued growth and stability for the university.

He also said they are a direct result of strategic financial and operational planning since Hurricane Katrina.

Loyola board of trustees member and donor, David M. Ferris, J.D. A’96, said in the press release that the ratings instill great confidence in him, as a donor, that his gift of capital is being managed wisely, and as a trustee, that the university has sound financial goals and objectives.

Abbey Brandon can be reached at [email protected]