June 23, 2003
Director of Media Relations
413/542-8417
AMHERST, Mass.-Standard & Poor's Ratings Services has raised its long-term bond rating for Amherst College to AAA, and Moody's Investors Service affirmed Amherst's existing long-term bond rating of Aaa, assigned to the college's outstanding debt in the fall of 2001. These are the highest ratings available.
Standard & Poor's praised Amherst's "exceptional endowment growth," "impressive demand" for admission, low debt and "good operations." Moody's based its rating on "Amherst's broad-based student draw supporting excellent student demand, vast financial resources relative to operating budget and debt and consistently superior operating performance."
Both ratings services took note of the college's financial health in a weak economy. "Unlike many institutions that have seen investments fall significantly over the past few years," Moody's reported, "Amherst's endowment is currently only 10 percent below its peak value" in 2000. Moody's cited Amherst's sustained fund-raising success, including a comprehensive campaign that had exceeded its goals when it ended in 2001.
Mary Peloquin-Dood, an analyst at Standard & Poor's, was quoted in The Bond Buyer saying, "This is a tribute to the operating performance of Amherst. This is the weakest period in higher education we've seen in 10 years, and they're doing great."
Founded in 1821, Amherst College currently enrolls approximately 1600 students from nearly every state and 48 foreign countries. Amherst offers the B.A. degree in 33 fields of study.
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