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Updated 8:30 AM April 16, 2007




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U-M gets top ratings from leading financial analysts

Reaffirming U-M's strong overall financial position, Standard & Poor's Ratings Service and Moody's Investor Services both have confirmed the University's rating on its outstanding general revenue bonds at each service's highest level: "AAA" from Standard & Poor's and "Aaa" from Moody's.

Standard & Poor's also has assigned their "AA+" rating, and Moody's has confirmed their "Aa2" rating, for the $150 million revenue bond issue by the University Hospital and Health Centers (HHC) supporting the $523 million C.S. Mott Children and Women's Hospital project. The bonds are payable solely through hospital gross revenues.

The rating endorses the financial stability of U-M and national excellence in academic, research and patient care programs, says University Treasurer Gregory Tewksbury. "The combination of these strong programs, diverse revenue streams and sophisticated financial management enables the University to effectively respond to the reduction in state appropriations over time," Tewksbury says.

According to Standard & Poor's analyst, Susan Carlson, the "AA+" rating on the hospital revenue bonds is related to its revenue and demand profile and strong connection to the University's overall credit quality. "The University of Michigan is one of only three public universities in the U.S. with general revenue bond debt rated "AAA" by Standard & Poor's," Carlson points out.

In its announcement, Moody's characterizes the U-M Hospital and Health Centers (UMHHC) as the state and region's preeminent academic health center, with a decade of increasing utilization trends.

Dave Morlock, chief financial officer of UMHHC, says he is pleased with the ratings. "We see these strong ratings as an endorsement of the Hospital and Health Centers' financial strength and stability, as well as the quality of our patient care and management efforts."

Information on the C.S. Mott Children's & Women's Hospitals replacement project is available online at

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