Moody’s Investors Service revises outlook for HCC

Jun 25, 2015

Moody’s Investors Service has revised the outlook on the Houston Community College System from negative to stable and upgraded the Junior Lien debt from Aa3 to Aa2.

“This report from Moody’s has affirmed the significant changes we have been making at HCC during the past year,” said Dr. Cesar Maldonado, HCC chancellor. “This revision reflects the strong management of our operational performance, the projection of continued strong operating health, and the rapid growth of our tax base.”

In upgrading the Junior Lien debt, Moody’s cited that HCC has “significant economies of scale in the Houston metro area, which allows it to offer a wide range of academic and technical programs at specialized learning centers” as a contributing factor to the rating change.

The Ratings Report also affirmed the existing rating of Aa1 on General Obligation Limited Tax Bonds and Maintenance Tax Note as well as the Aa2 rating on Senior Lien Bonds and Lease Revenue Bonds.

The report also stated, “The selection of a new chancellor in May 2014 plays a stabilizing role on the system’s credit despite his team’s relatively short tenure thus far. The management team’s decision to pursue the administrative reorganization to generate cost savings and improve central controls will likely provide a positive development, helping the system more effectively invest its resources to serve the community.”

HCC is currently developing Centers of Excellence to be more focused on creating working partnerships with the core businesses and industries in Houston to ensure quality education and training for the workforce of tomorrow. For more information, please visit www.hccs.edu.