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September 25, 2020

Moody’s: Quinnipiac Univ. outlook revised amid pandemic

PHOTO | CONTRIBUTED Quinnipiac's Mt. Carmel campus.
By Michelle Tuccitto Sullo

Moody's Investors Service recently revised Quinnipiac University’s outlook from “positive” to “stable.”

Meanwhile, it has affirmed the Hamden-based university’s A3 rating on about $405 million of outstanding debt. The bonds have an expected final maturity in 2045.

According to Moody’s, it revised the university’s outlook due to “revenue softening that may extend into at least fiscal 2021 due to a combination of enrollment pressures and the ongoing impact of the coronavirus pandemic.” 

The company noted the university experienced decreased enrollment and an annual revenue decline in the range of 6% to 7%  for fiscal 2020. Reduced net student revenue in fiscal 2021 may result in additional revenue softening, according to Moody’s.

“While we expect the university to continue to take actions to adjust expenses accordingly to sustain strong financial operations, there will likely be narrowing in operating cash flow margins for fiscal 2021,” Moody’s reported.

In affirming the university’s A3 rating, Moody’s cited its “excellent operating performance, robust liquidity, and very good strategic positioning.”

Even though Quinnipiac’s finances have been negatively impacted by the pandemic, it expects to sustain operating cash flow margins above 20% through fiscal 2021, according to Moody’s, which noted that this demonstrates Quinnipiac’s “effective financial strategy.”

John Morgan, a spokesman for Quinnipiac, declined to comment.

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