July 6, 2010
AMHERST, Mass.—In its most recent periodic review, Moody’s Investors Service, whose ratings of the fiscal health of colleges and universities determines the interest rates those institutions pay when they issue bonds, has restored Amherst College to the highest possible rating and outlook that Moody’s gives to colleges.
Peter J. Shea, the college treasurer, said he welcomes the “Aaa Stable” rating as an important validation by an outside party that budget reduction measures implemented during the economic downturn have substantially strengthened Amherst’s financial position.
“I’m certainly very pleased with the rating,” Shea said. “It recognizes the college community’s hard work in addressing the economic reality of the downturn, and in making the adjustments necessary to put the college in better financial shape.
But with the economy and financial markets both remaining uncertain, Shea cautions that fiscal discipline must continue to be exercised. “It will be important to maintain that discipline going forward,” he said. “In this climate of global instability, it is essential to continue to monitor our resources carefully.”