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

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

“���ϲʲ�ɫ�� 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 ���ϲʲ�ɫ�� Chief Financial Officer Mike Hales. “With the university now spending significantly less on pension benefits, ���ϲʲ�ɫ�� can use that money for a plethora of other uses.”

The rating solidifies ���ϲʲ�ɫ��’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 ���ϲʲ�ɫ��,” Hales continued. “If ���ϲʲ�ɫ�� 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.”

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