S&P Reaffirms Adelphi's Bond Rating
Garden City, NY (11/28/2023) — Standard & Poor's (S&P), the global leader in financial market intelligence, has reaffirmed Adelphi University's credit rating of A- with a stable outlook after a comprehensive evaluation of the University's financial health and creditworthiness.
"In the present environment, this is a big win for Adelphi. S&P's reaffirmation is a strong indicator of how we have managed recent financial challenges brought about by deficits and enrollment declines, particularly in the Northeast," said Michael Rhattigan, Adelphi's chief financial officer. "This is a significant achievement at a time when ratings agencies have been downgrading approximately 80% of U.S. colleges and universities, including highly selective institutions."
A strong S&P rating signifies that Adelphi is a low-risk entity, instilling confidence in bondholders that the university will be able to meet its financial obligations in the long term. This external validation of fiscal stability is crucial for Adelphi's continued growth and enrollment, as it assures prospective students, their families and donors of the institution's financial strength.
Among S&P's positive feedback and rationale for its reaffirmation of the credit rating were:
- The strategic vision put forth in Adelphi's Momentum 2 under the leadership of President Christine Riordan and her executive leadership team.
- Operating and financial actions taken over the past year.
- Evidence that a strong management team is working together closely and is well-prepared to deal with the current sector challenges.
- Manageable debt and operating leases ("maximum annual debt service"), given Adelphi's levels of cash, investments, and operating expenses.
- Adelphi's current enrollment and retention trends, which combined with the institutional cost improvements, should yield major financial improvements.
"We anticipate this rating will continue to prove positive beyond our financials, including efforts like recruiting, external partnerships and fundraising," said Rhattigan. "It is a testament to university-wide efforts."
About Adelphi: A modern metropolitan university with a personalized approach to higher learning
Adelphi University, New York, is a highly awarded, nationally ranked, powerfully connected doctoral research university dedicated to transforming students' lives through small classes with world-class faculty, hands-on learning and innovative ways to support academic and career success. Adelphi offers exceptional liberal arts and sciences programs and professional training at the undergraduate and graduate level with particular strength in our Core Four-Arts and Humanities, STEM and Social Sciences, the Business and Education Professions, and Health and Wellness.
Recognized as a Best College by U.S. News & World Report, Adelphi is Long Island's oldest private coeducational university. It serves more than 7,250 students at its beautiful main campus in Garden City, New York-just 23 miles from New York City's cultural and internship opportunities-and at dynamic learning hubs in Manhattan, the Hudson Valley and Suffolk County, as well as online.
More than 119,000 Adelphi graduates have gained the skills to thrive professionally as active, engaged citizens, making their mark on the University, their communities, and the world.
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Standard & Poor’s (S&P), the global leader in financial market intelligence, has reaffirmed Adelphi University’s credit rating of A- with a stable outlook. Photo credit: Ana Rodriguez, Adelphi University