Babson’s Bond Ratings Affirmed at Highest Levels in College’s History
Babson’s bond ratings recently have been affirmed at the highest levels in the College’s history by both Moody’s Investor Services and S&P Global Ratings.
Moody’s affirmed its A1 issuer rating for Babson, along with its A1 rating for the College’s outstanding debt. S&P Global, formerly known as Standard and Poor’s, affirmed its A+ rating. Babson initially received those bond ratings upgrades in 2022.
Babson’s credit ratings rank among the best in an ultracompetitive higher education landscape, which is facing increased challenges and demands, as well as ongoing uncertainty throughout the industry.
“Maintaining this rating level at a time of unprecedented uncertainty in American higher education is a victory,” said Katherine P. Craven P’22, Babson’s chief administrative and financial officer.
The credit news comes at the end of an academic year marked by several historic milestones, most notably Babson’s ranking at the No. 2 Best College in the United States by The Wall Street Journal, as well as being named the No. 1 undergraduate school for entrepreneurship and No. 1 MBA for entrepreneurship by U.S. News & World Report.
In its report, Moody’s wrote that Babson’s credit profile is “anchored by robust student demand and very good strategic positioning, as evidenced by continued positive enrollment trends, increased selectivity, and a tuition discount rate that is quite favorable relative to peers.”
Other strengths driving Babson’s top credit ratings include high levels of gift giving from alumni and others, comprising an increasing revenue stream for the College’s operations; continued growth of its endowment, strong financial discipline and management, and increased campus capital investments.
The initial bond ratings upgrades from Moody’s and S&P Global in 2022 reflected Babson’s strength in navigating the challenges of the pandemic while accelerating its strategic plan.
“These upgrades reinforce our strategy, recognize the hard work of our faculty and staff,” President Stephen Spinelli Jr. MBA’92, PhD said at the time, “and validate the College’s sophisticated financial management through one of the most intense and challenging periods in the history of higher education.”
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