UBC Affirmed with “AA+” Rating from S&P

Monday, March 29, 2021

Credit rating agency S&P Global Ratings (formerly Standard & Poor’s) has re-affirmed UBC’s credit and senior unsecured debt ratings as “AA+”.

The rating reports an expectation that “within our two-year outlook horizon, the university will maintain an excellent market position and demand profile.”

The report acknowledges that, like other universities rated by the S&P, UBC will continue to be “somewhat pressured” in the near term by the impacts of COVID-19, but that it “will continue to generate positive net adjusted margins despite budgetary pressures intensified by the pandemic; and available resources will remain high.”

“Credit ratings technically are only meant to apply to UBC’s publicly issued debt, but they are a great indication of UBC’s general financial wellbeing and strength,” said UBC’s Treasurer Yale Loh. “The AA+ rating from Standard & Poor’s is only one notch lower than their highest rating and is highest among universities in Canada. In addition, S&P commented favourably on our governance and financial management policies and practices, noting that UBC’s transparency and disclosure are as good and comparable with our peers.”

UBC was also recently re-issued an Aa1 rating from bond credit rating company Moody’s Investors Services, who commented on the university’s “outstanding market position, supported by robust student demand, and a very strong research reputation which has historically allowed the university to generate strong operating results.”

Review the entire report from S&P Global Ratings here.