More News

S&P Global Ratings affirms strong issuer credit rating for Fayetteville State University

By Staff Report, posted 1 year ago

S&P Global Ratings has recently affirmed its 'A-' issuer credit rating (ICR) and the 'A-' rating on Fayetteville State University’s (FSU) outstanding general revenue bonds (GRBs) issued by the University of North Carolina Board of Governors (BOG). At the same time, S&P Global also affirmed the 'BBB+' underlying rating on the FSU Housing, LLC’s outstanding limited obligation bonds issued by Fayetteville State. Such ratings are a factor in interest rates when institutions and governments borrow money. This action further confirms the University’s improved fiscal stability and steady growth.

“We continue to work closely with our partners in the UNC System and state government to further strengthen FSU’s financial foundation and fulfill our mission to offer a premier education to all who seek it, regardless of their circumstances,” said FSU Chancellor Darrell T. Allison in a  press release. “Our efforts have vastly improved the university’s fiscal health and future stability, further ensuring our commitment to students today and tomorrow. Our upgraded rating, along with this recent affirmation, confirms our continued growth and strength.”

S&P’s assessment pointed to FSU’s core strengths, particularly characterized by experienced senior management that is supported by the UNC System, a healthy and improving retention rate, and recent growth in undergraduate enrollment. FSU’s profile was also bolstered by support from North Carolina (AAA/Stable) for both operations and capital, a significant 45.7percent of total adjusted operating revenue in fiscal 2023, as a result of the state providing additional funds to FSU in lieu of tuition revenue as outlined with the NC Promise. The ICR also reflects the university’s continued ability to meet its financial obligations.

The report also noted FSU’s consistent enrollment growth since joining the NC Promise initiative. Moreover, S&P Global anticipates an increase in demand for the University because of inflationary increases throughout the state.

Ico insights

INSIGHTS

SPONSORS' CONTENT

In The Current Issue

Building on the basics: Advanced Contractors Academy equips local firms to compete for government projects

The Advanced Contractors Academy, a free six-week program, is designed for established contractors ready to pursue larger-scale public contracts with agencies such as Fayetteville State University (FSU), Cumberland County and Cape Fear Valley Health.


Hungry for success: Local entrepreneur Kelton Battle is changing the vending machine game in North Carolina

Today, Hungry Snacks Vending operates 140 machines across North Carolina, with locations ranging from schools to public transit stations.


Too bright to dim: My Future So Bright program sees exponential growth during third year

 A total of 84 interns participated in this year’s My Future So Bright program. At the graduation ceremony held on Aug. 1, each student was able to receive their graduation certificates from Mid-Carolina Regional Council Executive Director Saman