Moody’s confirms Pacific’s stable fiscal outlook with A2 rating

Moody's Investors Service, a preeminent financial services firm that grades investments and issuers on creditworthiness, today reaffirmed University of the Pacific's A2 rating, confirming the university's financial outlook is stable.

"It's wonderful to have a solid affirmation that we are moving in the right direction to ensure a strong and stable future for Pacific," Pacific President Pamela A. Eibeck said.

Moody's cited Pacific's size of operations, diverse programs at three campus locations - Sacramento, San Francisco and Stockton - and improved admissions practices as key factors in the stable rating. Pacific has demonstrated an upward trend in enrollment with increases in 2017 and 2018, and has experienced continued growth in its graduate programs with 40 percent of full-time students enrolled in those programs. Moody's also noted the university's investments in and implementation of new programming, such as the high-demand health programs scheduled to be launched in 2021 and 2022.

Pacific's robust "Leading with Purpose" fund raising campaign, which officially launched in 2017 and has already raised $220 million of a $300 million campaign goal, was also a factor in the rating.

Pacific is in the process of implementing a budget reallocation plan, a collective effort of all departments and schools, to increase its margin. Moody's acknowledged Pacific's effort in this area, citing "conservative fiscal management and active strategy to control expenditures."

An A2 signifies that Pacific is a low credit risk for long-term debt and has a strong ability to repay short-term debt.