Moody's Investors Service rating reflects:

Strengths:

• The University’s large diversified enrollment base, with highly reputable graduate programs and continued healthy growth in net tuition per student; continued strengthening of student demand most directly demonstrated by a ramp-up in yield on admitted students.
• Healthy and highly consistent cash flow generated by the University as a whole stemming from strong performance of health system, growing research activities and a rising endowment.
• Large financial resource base which has exhibited continuous growth over the last few years as fundraising and investment returns fueled growth.
• Potential for significant expansion in fundraising success as senior leadership team focuses on investing in development infrastructure.

Challenges:

• Relatively heavy reliance on healthcare operations (64% of total revenue) which has historically been more volatile than other University operating units, although recent performance has been strong and hospitals are leaders in
  service area;      
• Highly competitive environment for students (demonstrated by low matriculation rate of 23%) may place pressure on future tuition flexibility,although recent enrollment trends have been sustained as the University
  has lowered its discount rate;
• Capital spending requirements are likely to remain substantial, but opening cash flow and rapid retirement of debt should continue to sustain debt capacity.