Top credit-rating agency backs USC’s strong financial position
Posted on: July 21, 2026; Updated on: July 21, 2026
By Andy Shain, ashain@sc.edu
The University of South Carolina system’s latest financial outlook from Moody’s Investors Service reflects the ongoing quality of the university’s disciplined stewardship as it advances capital priorities and reinforces external confidence in USC's financial profile and leadership.
USC’s Series 2026 Higher Education Revenue Bonds earned Moody’s “Aa2” rating, one of the highest designations granted by the agency. The latest rating signifies a stable long-term financial outlook for the state’s flagship university and is based on a detailed analysis of the university’s system’s revenue, existing debt and forecast of its ability to serve the needs of future students.
Moody’s views USC's position as South Carolina's flagship university, continued enrollment growth and stable operating performance as core credit strengths.
The agency highlighted disciplined expense management, stronger state operating support and growth in financial resources. Total cash and investments increased nearly 40 percent over the past five years through operating surpluses, investment returns and donor support.
Moody’s, the gold standard of credit-rating agencies, gave USC a stable outlook on the expectation that the university will continue generating solid operating margins, maintain strong liquidity and align future borrowing with continued growth in financial reserves.
Moody's emphasis on the university’s disciplined expense management and prudent capital planning — along with the expectation that future debt will be matched by continued growth in financial reserves — underscores the value of the university's intentional, long-term approach to financial and strategic planning.
Moody’s also affirmed a “Aa3” rating on USC’s athletic facilities revenue bonds.