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Oct. 20, 2021 —  �鶹������Ʒ has retained its A1 credit rating in the latest report by Moody's Investors Service, confirming �鶹������Ʒ’s stable financial future.

The decreased pension payments to the Kentucky Employees Retirement Systems (KERS) was a contributing factor to �鶹������Ʒ’s A1 ranking. to exit KERS last year, �鶹������Ʒ will reduce its future pension payments by $4.5 million each year.

“�鶹������Ʒ was spending over 8.5% of its operating budget on pension payments for the combined defined benefit and defined contribution plans before the university opted out,” said �鶹������Ʒ Chief Financial Officer Mike Hales. “With the university now spending significantly less on pension benefits, �鶹������Ʒ can use that money for a plethora of other uses.”

The rating solidifies �鶹������Ʒ’s financial stability by exchanging uncertain future pension contribution increases for consistent bond payments over the next 30 years.

“The rating also has long-term financial implications for �鶹������Ʒ,” Hales continued. “If �鶹������Ʒ chooses to take on any future debt for whatever reason, it will keep the university’s borrowing costs low as the A1 rating means we are a low credit risk.”

�鶹������Ʒ has been rated A1 since 2010. The entire Moody’s report can be read with a subscription.