Moody’s Reaffirms Texas Tech University System’s Aa1 Long-Term Credit Rating
June 29, 2020 | Contact: Scott Lacefield
Gary BarnesThe TTU System received an upgrade to Aa1 Stable in 2015, received an Aa1 rating in 2017, 2019 and again this year. Moody’s is the latest of the influential credit rating agencies to rate the TTU System with an elite-level rating.
“We are proud of this recognition — one that unequivocally places us among the top tier of higher education institutions in the country,” said Gary Barnes, vice chancellor and chief financial officer of the TTU System. This accomplishment wouldn’t be possible without the collaboration, expertise and teamwork among our CFOs across the system and our investment team.”
During the past 11 years, Moody’s has given the TTU System two rating category updates from Aa3 to Aa2 (2008-2010) and from Aa2 to Aa1 (2015-17).
Moody’s cites the reaffirmation credit rating is due to the TTU System’s excellent strategic positioning which will enable it to withstand near term effects from the coronavirus pandemic. The corporation also lists the TTU System’s sizable and growing $2 billion diverse scope of operations, with robust operating, debt service and capital support as key components of the positive rating.
Tedd L. Mitchell, M.D.“This is fantastic news and demonstrates the quality of leadership we have guiding our financial operations and strategic investments across the Texas Tech University System,” said Tedd L. Mitchell, M.D., chancellor of the TTU System. “I’d like to congratulate System CFO Gary Barnes, our university CFOs and financial leadership teams, along with our investment team for building a strategic approach that supports the missions of our universities.”
Moody’s also touts the TTU System’s steady donor support for capital and student financial aid, solid wealth of $2.6 billion and spendable cash and investments of $1.8 billion.
The TTU System also has received back-to-back AA+ ratings by Standard & Poor’s, and Fitch Ratings reaffirmed the TTU System with an AA+ rating in 2018.
About the Texas Tech University System
Established in 1996 and headquartered in Lubbock, Texas, the Texas Tech University System is a $2 billion higher education enterprise focused on advancing higher education, health care, research and community outreach. Consisting of four universities – Texas Tech University, Texas Tech University Health Sciences Center, Angelo State University and Texas Tech University Health Sciences Center El Paso – the TTU System collectively has approximately 55,000 students, 17 campuses statewide and internationally, more than 300,000 alumni and an endowment valued at over $1.3 billion.
During the 86th Texas Legislature under the leadership of Chancellor Tedd L. Mitchell, M.D., legislative funding and authority was provided to establish a new Texas Tech University veterinary school in Amarillo and a new dental school at Texas Tech University Health Sciences Center El Paso. This will be the state’s first veterinary school in more than a century and first dental school in over 50 years. The addition of these two schools makes the TTU System one of only nine in the nation to offer programs for undergraduate, medical, law, nursing, pharmacy, dental and veterinary education, among other academic areas.