Huntsville, Ala. ---- In the recent review by Moody's, the bond rating agency commended the University on the following recent developments: improvement in governance and management stability, improvement in financial management; improvement in the timely delivery of financial information and plans to strengthen liquidity over time.
“It took several years for the bond rating to get to where it is today and we continue to make it a priority to work towards positive results that will help us get the rating to where we would like for it to be,” says Dr. Andrew Hugine, Jr., president of Alabama A&M University.
While tremendous progress has been made, nonetheless Moody's reaffirmed the current rating, citing the need for Alabama A&M to maintain continued improvements in liquidity and enrollment. Moody's review also considered the University's significant capital needs which Moody's stated could require a possible bond issuance within 12-18 months to address the needs. “The University has no plans to access the market in the foreseeable future,” says Dr. Hugine.
“AAMU is among a number of colleges and universities statewide that faced a loss of enrollment due to federal financial aid changes and ongoing economic challenges,” says Dr. Hugine.
The University will continue to aggressively and strategically address the measures that Moody's has identified as essential to enhancing the overall rating of the university in the financial market.