Moody's gives Fort Valley State negative outlook | News
Moody's Investor's Service has given Fort Valley State University a BAA 1 rating, which is considered medium.
The institution has received this rating partly due to its declining enrollment, weak operating performance and minimal resources according to Moody's website.
The credit rating agency says that enrollment declined by 11.5% in Fall 2013. This after a 9.2% decline in Fall 2012. Moody's also said that the state has made cuts to tuition-assistance programs
However, the school does have a few strengths the service has listed. Two of them are the school's importance as a historically black university and the Board of Regent's heightened oversight including quarterly reviews.
FVSU's president, Ivelaw Lloyd Griffith, said in a statement, "Fiscal conditions, as a result of budget cuts and declining enrollment, factored significantly in the bond rating. It is also important to note that FVSU has improved financial stewardship of its public funds--which was stated as one of our institutional strengths."
Moody's website says that with stable enrollment, an improved cash position and a better operating performance could mean a higher rating for the university.
"I am optimistic that our aggressive recruitment, corporate engagement, technology and other enhancements are setting the campus on the correct path for growth," said President Griffith.