NSHE's Elite Ratings Unlock Major Savings for UNLV, UNR | The Locally Times
Elite financial ratings from Moody's and S&P Global position the Nevada System of Higher Education to significantly reduce borrowing costs for UNLV and UNR, freeing up funds for key campus investments.
Nevada's public universities are poised for significant financial relief and future growth after the Nevada System of Higher Education (NSHE) secured strong financial ratings from Moody's and S&P Global Ratings. NSHE announced March 27 that these top-tier ratings will allow it to refinance existing debt for the University of Nevada, Reno (UNR) and the University of Nevada, Las Vegas (UNLV). This strategic financial move aims to reduce long-term debt service costs for both universities, supporting continued investment in campuses and programs. ## Top Ratings Affirm Financial Strength Moody's affirmed NSHE’s Aa2 rating, its third-highest, with a stable outlook. S&P Global Ratings assigned an AA- rating to the upcoming bond issuance and affirmed its AA- rating on NSHE’s existing debt, also with a stable outlook. These ratings, unchanged since March 2023, signal sustained financial strength for the system, NSHE noted. The Board of Regents approved the debt refinancing at its March 5-6 meeting. The refunding bonds are scheduled for competitive sale in the week following the March 27 announcement. ## Key Factors Drive Robust Performance Both rating agencies, NSHE reported March 27, cited several key factors for the system's robust financial standing. Moody's highlighted sustained enrollment growth and increasing operating revenues. The agency also noted NSHE's prominent statewide role as Nevada's sole public higher education system. S&P Global Ratings further underscored NSHE's 'very strong' enterprise and financial profile, recognizing the system's capacity to support future capital investment across its institutions. ## Impact and Unspecified Details These strong financial ratings reinforce NSHE's sustained fiscal health and its ability to plan for long-term investments across its institutions. This financial positioning can contribute to stable funding for UNLV and UNR, directly impacting program quality and infrastructure development. While the refinancing aims to reduce long-term debt service costs, NSHE's March 27 announcement did not detail the specific dollar amount of debt being refinanced for UNLV and UNR. The announcement also did not specify the exact cost savings anticipated from this debt refinancing effort. ## Your Questions Answered **What does this mean for UNLV and UNR?** The strong financial ratings allow NSHE to refinance existing debt, aiming to reduce long-term borrowing costs for both universities and free up funds for campus improvements. **When will the debt refinancing occur?** The refunding bonds are scheduled for competitive sale in the week following the March 27 announcement. **Where can I find more details on the debt reduction?** NSHE's March 27 announcement does not specify the exact dollar amount of debt being refinanced or the anticipated cost savings.