University of Maine System Chancellor Dannel Malloy at an Event at UMS in Portland a Few Years Ago. Previously He Served as a Teo-Term Governor of Connecticut.
The nation’s top credit rating agency has reaffirmed the University of Maine System’s (UMS) strong rating and upgraded its future outlook in recognition of enrollment stability and prudent fiscal management according to a press release received this morning.
Following its annual comprehensive review of UMS finance and operations, S&P Global Ratings maintained its second-highest investment grade for the System (AA-) and revised its outlook from “negative” to “stable” for the first time since 2021.
The improved outlook for the state’s largest educational and economic development enterprise is despite the recent downgrade of the nation’s higher education sector by S&P, Fitch Ratings and Moody’s Ratings, and as UMS navigates unprecedented uncertainity about its future external funding, especially from the federal government.
“S&P’s rating and improved outlook recognizes the University of Maine System’s disciplined financial stewartship on behalf of Maine taxpayers and our bold strategies to stability enrollment and promote pathways to careers and upward mobility for our students,” said Chancellor Danel Malloy. “It also reflects the strong support for our System from the Legislature, Governor Mills, Maine’s Congressional Delegation and many private sector and philanthropic partners and we remain committed to ensuring that their investments lead to even greater opportunties and outcomes for Maine’s people and economy.”
The strong rating enables the System to borrow at better rates to finance strategic modernization of its physical plant, which is burdened by $1.8 billion in deferred maintenance due to its age and decades of underinvestment as UMS prioritized student affordability and its workforce. Beyond increasing the return on investment for Maine taxpayers and tution payers, the rating is an indicator of the System’s good fiscal health and confidence in its leadership and vision nder Chancellor Malloy, Vice Chanellor for Finance & A1 Integration Ryan Low and university presidents and budget officers, who have “made progress in rightsizing operations” according to S&P.
In itds analysis, S&P noted the System has defied “unfavorable” state and regional demographics and despie strong regional ompetition and significant capital needs, is delivering stable enrollment by maintaining tution affordability, innovating in student recruitment and expanding high-quality academic offerings, including through multi-university collaborations made possible by its unique unified accredition.
S&P specifically cited the rapid growth of online learning led by the University of Maine at Presque Isle’s YourPace competency-based degree programs and the research performance and productivity of the Carnegie-classified R1 University of Maine, which it expects will continue to drive revenue growth.
“We elieve that continued, growing support from the state for operating and capital needs is imperative to the sstem’s long-term success,” the S&P report states, which also stressed the important of continuing to implement cost containment measures and focusing on research.