S&P Reaffirms Adelphi's Bond Rating

“In the present environment, this is a big win for Adelphi. S&P’s reaffirmation is a strong indicator of how we have managed recent financial challenges brought about by deficits and enrollment declines, particularly in the Northeast,” said Michael Rhattigan, Adelphi’s chief financial officer. “This is a significant achievement at a time when ratings agencies have been downgrading approximately 80 percent of U.S. colleges and universities, including highly selective institutions.”

A strong S&P rating signifies that Adelphi is a low-risk entity, instilling confidence in bondholders that the University will be able to meet its financial obligations in the long term. This external validation of fiscal stability is crucial for Adelphi’s continued growth and enrollment as it assures prospective students, their families and donors of the institution’s financial strength.

Among S&P’s positive feedback and rationale for its reaffirmation of the credit rating were:

• The strategic vision put forth in Adelphi’s Momentum 2 under the leadership of President Christine Riordan and her executive leadership team
• Operating and financial actions taken over the past year
• Evidence that a strong management team is working together closely and is well-prepared to deal with the current sector challenges
• Manageable debt and operating leases (“maximum annual debt service”), given Adelphi’s levels of cash, investments and operating expenses
• Adelphi’s current enrollment and retention trends, which, combined with the institutional cost improvements, should yield major financial improvements

“We anticipate this rating will continue to prove positive beyond our financials, including efforts like recruiting, external partnerships and fundraising,” said Rhattigan. “It is a testament to University-wide efforts.”