Moody's Ratings downgrades WA, Lee University (VA) to Aa3; outlook revised to stable

Moody’s Investors Service has revised its outlook for the University of Washington (UW) to negative from stable, while affirming its Aaa issuer rating, ahead of the university’s planned bond issuance. The downgrade in outlook reflects concerns over "thinning operating performance," driven by rising expenses and weak performance at UW’s academic medical center, as well as relatively narrow liquidity compared to the scale of its operations according to Moody’s analysis. Despite the negative outlook, Moody’s maintained UW’s top-tier Aaa rating, citing its strong brand, research capabilities, and robust fundraising. The university plans to issue $221.2 million in general revenue bonds next week, with proceeds allocated to capital projects, debt refinancing, and operational costs.

Separately, Moody’s upgraded Silicon Valley Clean Energy (SVCE) to an A3 investment-grade rating, recognizing its financial stability, resilient service territory, and diversified clean energy portfolio as reported by Moody’s. The agency highlighted SVCE’s long-term power purchase agreements and community support as key factors in the upgrade. SVCE, which serves over 275,000 customers in Santa Clara County, also holds an ‘A’ rating from S&P Global Ratings.

No relevant information was found in the provided materials regarding Moody’s ratings actions for Washington or Lee University.