S&P Global Ratings Adjusts University of Central Missouri Revenue Bond Rating to 'A' with Stable Outlook Amid Capital Investments

By Alex Greenwood, July 30, 2026

 

 

S&P Global Ratings has adjusted its long-term credit rating on the Missouri Health and Educational Facilities Authority’s educational facilities revenue bonds (series 2018A, 2018B, and 2023) issued for the University of Central Missouri (UCM) to 'A' from 'A+'. Concurrently, S&P assigned an 'A' long-term rating to the university's planned new 2026 series educational facilities revenue bonds. The outlook for all ratings remains stable.

 

Proceeds from the yet-to-be issued 2026 bonds are earmarked for critical campus infrastructure enhancements, including the rebuilding of an existing residence hall, the construction of a new campus welcome center, a new indoor March Mules storage and practice facility, and several other campus-wide modernization projects.

 

As noted by S&P, the rating change reflects in part short-term anticipated changes in the university's balance sheet ratios as a result of the issuance of additional, general obligation debt. S&P further noted that the rating is influenced by ongoing pressures related to a decline in full-time-equivalent (FTE) graduate international student enrollment during fall 2025 driven by restrictive federal student visa policies.

 

Despite the rating adjustment, S&P highlighted several key credit strengths validating UCM's resilient financial and operational framework:

• Strong Enterprise Risk Profile: Driven by consistent, stable domestic undergraduate enrollment, supported by successful new initiatives such as a direct admissions strategy that generated 16% growth in applications in fall 2024 and 6% in fall 2025.
• Manageable Debt Burden: The university's pro forma maximum annual debt service (MADS) remains highly manageable at 4.3% of fiscal 2025 operating expenses.
• Substantial Financial Reserves: UCM maintains significant total cash and investments as part of its financial management program.
• Experienced Management Team: Leadership under President Roger Best has been praised for proactive, conservative financial oversight and historical success in executing budget adjustments to preserve cash-basis break-even operations. 

"While the strategic choice to fund major capital and infrastructure improvements partially through debt predictably alters our balance sheet ratios in the short term, these investments are vital for the long-term recruitment and retention of our students," Bill Hawley, vice president for finance and operations, noted in response to the report. 

He added, “These funds are not needed for operational purposes, rather this allows us to move forward expediently with a number of transformative projects that will meet and exceed the needs and expectations of our students of today and tomorrow. Funding these upgrades through a combination of debt and institutional resources results in a debt obligation that the university can comfortably meet while also preserving significant reserves that allow for flexibility in the future.”

 

The stable outlook reflects S&P Global Ratings' confidence that undergraduate enrollment will remain stable and that UCM's leadership will maintain its disciplined approach to fiscal management, keeping overall campus operations positive on a cash basis.