Moody’s Investors Service Releases Improved Rating of Yeshiva University’s Financial Credibility

By: Batia Segal  |  June 30, 2021

By Batia Segal, Business Editor 

Moody’s Investors Service, a service that analyzes the financial credibility and investment risk of a company, has announced as of June 22, 2021 that Yeshiva University has been upgraded to a rating of B2.

Since 2014, Yeshiva University has been ranked by Moody’s Investors Service at B3, which indicates the institution’s poor credibility. The upgraded rating to a B2 reflects that Moody’s has “revised the outlook to positive from stable.” In other words, despite the institution’s current total outstanding debt of $240 million dollars, the analysts at Moody’s have obtained a positive outlook regarding the University’s future financial prospects. 

Even though a B2 rating still indicates that the school is a high risk borrower, the improved rating reflects “a combination of positive momentum on net tuition revenue growth driving improvement in the university’s core operations combined with improvement in liquidity and financial resources.” In other words, because of the facility’s increase in tuition revenue and cash flow from its assets, its rating has improved and is expected to grow financially.

Furthermore, the report mentioned some factors that can lead to a future rise in ratings. Some include efficiently decreasing YU’s operational expenses and effectively liquifying its assets. On the other hand, there are a couple of elements that can hinder its credibility such as a steep decline in anticipated liquidity or the inability to properly cut down operational costs. 

Overall, it seems that the prospects for Yeshiva University’s financial future are heading in a positive direction and if they continue in this trajectory they are likely to up their ranking further next year.


Editor’s note: article photo has been changed due to copyright concerns.