Fitch affirms Hubbell at 'A-'; outlook stable

Fitch affirms Hubbell at 'A-'; outlook stable

Stanford University has announced plans to sell $500 million of taxable bonds, which have received AAA ratings from each of the major credit rating firms: Fitch Ratings, Moody's, and S&P Global Ratings. The bonds, known as Series 2025 B, are expected to be priced as early as next week, according to a roadshow document posted on MuniOS. Proceeds from the sale will be used for general university purposes.

The university's General Use Permit, approved by Santa Clara County in 2000, allows for the development of over 2 million square feet of new academic facilities and 4,468 new housing units for students, faculty, and staff. However, the permit limits new development but not the removal, renovation, or rehabilitation of existing facilities. Stanford is using its remaining allotments for renovations at existing sites on its main campus and developing facilities in other jurisdictions, including its Redwood City campus.

Stanford's financial strengths are highlighted by a 2.4% increase in net assets to $52.5 billion in fiscal 2024. Operating revenue for the year, excluding Stanford Health Care and Lucile Salter Packard Children's Hospital, was $8.4 billion. Fitch Ratings, which assigned a stable outlook to the bonds, noted the university's exceptional demand profile, strong research platform, robust financial profile, and excellent fundraising track record.

Goldman Sachs and Morgan Stanley are acting as the lead underwriters for the bond sale. Stanford University continues to monitor developments involving the federal government, which could potentially reduce support for the university. Fitch Ratings' stable outlook reflects ample financial flexibility against potential revenue pressure in fiscal 2026 and beyond, including ongoing developments involving the federal government.

References:
[1] https://www.tradingview.com/news/DJN_DN20250731018896:0-stanford-university-to-sell-500-million-of-taxable-bonds/