Endowment Growth, Sound Management Contribute to Assumption’s ‘A-’ Standard and Poor’s Rating

Assumption has maintained its “A-” Standard & Poor’s (S&P) rating. The strong rating—based on the institution’s solid balance sheet, growing endowment, low debt, responsible budgeting and operating surplus—demonstrates effective management of the College’s finances and allows Assumption to borrow at lower rates for campus expansion endeavors. For the first time in its history, the College’s endowment has surpassed $100 million.

This favorable rating places Assumption in the same investment grade as other intuitions of higher learning such as Fairfield University, Georgetown University, John Carroll University and Seton Hall University. In June 2014, S&P completed their annual surveillance review and affirmed their  “A-“ long-term rating.

This is the second consecutive fiscal year Assumption has earned this sound rating from S&P. In addition, for the past 38 consecutive fiscal years, Assumption has had a balanced budget. The endowment, with a market value of $101 million, grew 9.9 percent over fiscal 2013.

“Despite the challenges that face many New England colleges, Assumption is pleased with this independent affirmation of our efforts to serve as effective stewards of the College’s financial resources as we provide a valuable education to students,” said Assumption President Francesco C. Cesareo, Ph.D. “The Standard and Poor’s rating reflects the prudent management of Assumption’s investment portfolio and the wide breadth of support from alumni and other benefactors. Thanks to generous individuals and proper financial management, Assumption’s endowment has increased to $101 million, providing new opportunities for students and faculty.”

S&P cited a number of attributes regarding the strength of Assumption’s financial management:

• Solid balance sheet
• Mostly liquid endowment, with market value of $101 million
• Relatively low debt
• Conservative budgeting
• Operating surpluses

S&P also recognized Assumption’s significant increase in enrollment deposits from members of the Class of 2018; the class’s above-average academic profile; and the strong, five-year retention rate.

“We view [the enrollment] increase favorably, given the highly student-dependent nature of the College and the highly competitive market for students,” the S&P report stated.