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Oct. 20, 2021 —  �ؾ��� has retained its A1 credit rating in the latest report by Moody's Investors Service, confirming �ؾ���’s stable financial future.

The decreased pension payments to the Kentucky Employees Retirement Systems (KERS) was a contributing factor to �ؾ���’s A1 ranking. to exit KERS last year, �ؾ��� will reduce its future pension payments by $4.5 million each year.

“�ؾ��� was spending over 8.5% of its operating budget on pension payments for the combined defined benefit and defined contribution plans before the university opted out,” said �ؾ��� Chief Financial Officer Mike Hales. “With the university now spending significantly less on pension benefits, �ؾ��� can use that money for a plethora of other uses.”

The rating solidifies �ؾ���’s financial stability by exchanging uncertain future pension contribution increases for consistent bond payments over the next 30 years.

“The rating also has long-term financial implications for �ؾ���,” Hales continued. “If �ؾ��� chooses to take on any future debt for whatever reason, it will keep the university’s borrowing costs low as the A1 rating means we are a low credit risk.”

�ؾ��� has been rated A1 since 2010. The entire Moody’s report can be read with a subscription.