Earlier this year, S&P Global Ratings assigned its 'A-' issuer credit rating (ICR), with an outlook of stable, to Holy Family University.
S&P assessed the University’s enterprise profile as strong, characterized by stable enrollment, solid retention, and moderate discounting. S&P also assessed the University's financial profile as strong, with most of the university's debt scheduled to amortize in the next 10 years and excellent operating margins driven by growth in net tuition revenue.
“Our ratings increase was in direct relation to our solid financial strategy, ability to be nimble and agile during the transition to virtual learning, and to successfully moving toward our goal of refinancing our long-term debt,” said Eric Nelson, vice president of Finance and Administration and chief financial officer. “While other schools may have had to remain stagnant during the pandemic, being on strong financial footing allowed us to make capital improvements on our campus over the past two years.”
The long-term rating reflects the S&P assessment of Holy Family University in three key areas:
- Track record of positive operating results, including a fiscal 2021 surplus of $11.4 million, which has supported balance sheet growth;
- Consistent growth in net tuition revenue, due to relatively stable discounting around 35%; and
- Stable full-time equivalent (FTE) enrollment, with modest growth in recent years and a small decline in fall 2021, despite the university's location in a highly competitive region with challenging demographic trends.
Holy Family University was previously rated by Fitch at BBB-.