Standard and Poor’s bond raters say UO’s well is full

Great news! Standard and Poor’s says there’s plenty of water in the well for faculty pay increases. Now we can get to Lariviere’s 2009 goal of the AAU medians:

From: James Bean [mailto:[email protected]]
Sent: Sunday, June 07, 2009 12:26 PM
To: Deans Working Group
Subject: Faculty Salaries

The Missouri article stating that UO has the lowest salaries in the AAU has caused quite a stir (we have since verified that they were correct).  Low salaries were always thought of as just Oregonian.  But 34 out of 34 is a whole other thing.  We cannot have this.  Richard’s reaction was “this is job #1.”  Richard will likely have an announcement on how we are attacking this when politically feasible (after last gavel).  Please communicate to your faculty that the Missouri article really got our attention.  This may require disruptive solutions.

Thanks, Jim
_______________________________
James C. Bean
Senior Vice President and Provost
202 Johnson Hall

Unless of course JH has already spent the money on themselves.

UO is just below AAA, a rating which is usually reserved for T-Bills and so on. From S&P:

‘AAA’—Extremely strong capacity to meet financial commitments. Highest Rating.
‘AA’—Very strong capacity to meet financial commitments.
‘A’—Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.

“Around the 0” has the report:

In the latest “first” associated with the governance transition, the University of Oregon has received credit ratings for its proposed inaugural bond sale.

Credit ratings evaluate the ability of a company or institution to pay investors both principal and interest on investments according to the terms proposed to investors. The newly announced credit ratings for the UO are Aa2 and AA- as rated by Moody’s and Standard & Poor’s, respectively.

“Both agencies assigned high credit quality ratings to the university,” Karen Levear, the UO’s director of treasury operations, said. “Generally, the better the credit rating, the lower the university’s cost of borrowing.”

According to S&P, the UO’s rating reflects the university’s strong fundraising program and endowment, stable enrollment, prominence within the state and region, solid operating performance and successful transition from the Oregon University System. Moody’s also cited the UO’s clear debt policies and management practices, which include strong financial modeling.

“This is a very significant step in the university’s governance transition. The ability to issue our own bonds allows for flexibility to move quickly to meet university needs or to capitalize on favorable market conditions,” Levear said. “There was a thorough review process to obtain the credit ratings, and I appreciate everyone who was involved.”

In December 2014, the UO Board of Trustees authorized the university to pursue $50 million in general revenue bonds. The sale is expected to close in March.

The funds raised will be used for already approved capital projects, including the Erb Memorial Union and the renovation of Columbia 150.

—By Julie Brown, Public Affairs Communications