NEW ROCHELLE, NY –Iona College's bond rating outlook from Moody's Investors Service has been upgraded to positive. The College's current Baa2 rating was also affirmed.
Moody's pointed to a number of reasons for the outlook upgrade, including continued solid operating cash flow, growth in reserves from retained surpluses in budget, and steady debt reduction over the past several years. The report also noted Iona's track record of strong fiscal discipline and healthy debt service coverage and the increased donor support and rising endowment.
“This is welcome news. Iona College has kept an especially sharp eye on managing its expenses, maintaining positive cash flow, fundraising to grow the endowment and for the exciting capital projects on our campus that include modern residence halls, the Hynes Institute for Entrepreneurship & Innovation and the new LaPenta School of Business," said Anne-Marie Schettini-Lynch, senior vice president for Finance and Administration. "We are particularly pleased with Moody’s positive outlook and affirmation of our bond rating as it reflects the College’s continued fiscal discipline and responsible stewardship at a time when so many institutions of higher education face challenging financial headwinds.”
A bond rating is a grade given to bonds in order to indicate its credit worthiness. Independent rating services such as Moody's provide evaluations of a bond issuer's ability to pay a bond's principal and interest in a timely fashion. Bond ratings are important to both investors and entities that are issued bonds because the rating affects the interest rate to be paid. Iona currently holds bonds issued from 2012 by the Dormitory Authority of the State of New York and from 2015 by the City of New Rochelle Corporation for Local Development.
Founded in 1940, Iona College is a master's-granting private, Catholic, coeducational institution of learning in the tradition of the Edmund Rice Christian Brothers. Iona's 45-acre campus is just 20 miles north of Midtown Manhattan. With a total enrollment of nearly 4,000 students and an alumni base of over 45,000 around the world, Iona is a diverse community of learners and scholars dedicated to academic excellence and the values of justice, peace and service. Iona is highly accredited, offering undergraduate degrees in liberal arts, science, and business administration, as well as Master of Arts, Master of Science and Master of Business Administration degrees and numerous advanced certificate programs. Iona's LaPenta School of Business is accredited by AACSB International, a prestigious recognition awarded to just five percent of business schools worldwide.