Key improvements in place ahead of new Moody’s rating
November 5, 2015—-Despite having satisfied and exceeding key expectations associated with avoiding a rating downgrade, Moody’s Investor Service has changed Elizabeth City State University’s fixed rate general revenue bonds to Baa1 from A3, according to a report released Thursday, Nov. 5.
During the 2015 fiscal year, ECSU has been intent on addressing items in the 2014 Moody’s report, which would lead to a rating downgrade for this year.
This year the state recently granted the university a special appropriation separate and apart from normal enrollment funding, earmarking $3 million a year for the next two years. In addition, Gov. Pat McCrory’s proposed bond package includes $13 million earmarked for ECSU capital projects. This addresses the 2014 Moody’s report that a disruption or downturn in state funding could lead to a rating downgrade.
New freshman enrollment at ECSU has increased more than 28 percent since last year, which also addressed the 2014 report.
In addition, ECSU’s auxiliary operating activity is now positive. Operation adjustments have stabilized expenses.
The university continues to make positive gains, according to Chancellor Stacey Franklin Jones. With the creation of new, signature programs and broader student recruitment efforts, ECSU is moving forward.
“We have positioned ourselves to advance on the Path to Prominence and will continue to do so,” said Chancellor Jones.