Университет Монтевалло сохранил инвестиционный рейтинг A- от S&P после реформ и смены руководства

University of Montevallo maintains strong S&P credit rating following leadership transitions, program cuts MONTEVALLO, Ala. (WBRC) - The University of Montevallo (UM) has maintained its investment-grade rating of A- and a stable outlook from Standard & Poor’s (S&P) Rating Services after an August 2026 credit review. The rating affirmed continued confidence from a major credit rating agency and followed more than a year of changes, which targeted the university’s overall sustainability and financial well-being after a budget shortfall of approximately $8 million. Leadership transition and financial developments In May 2025, former president Dr. John W. Stewart III announced his decision to step away from the role after 15 years. In June 2025, the board of trustees approved a finalized agreement for Stewart, which included monthly payments and a stipend. The contractual change and exit of Stewart followed an increase in tuition for the first time in seven years due to pressures of rising operational costs and aging infrastructure, according to UM representatives. Dr. Terry Roberson served as interim president for most of the 2025-2026 school year as officials searched for the school’s 16th president. During Roberson’s term, further changes were made across campus, including the sale of land, the elimination of some athletic teams, and the decision to discontinue nine minors and seven concentrations. Despite the elimination of some specific areas of study, a new major was added, and current students who had already declared a discontinued minor or concentration were still able to graduate with either. The decision to cut minors and concentrations was driven by numbers, according to university leaders. In May 2026, the university announced the budget was balanced, and it had paid off a $10 million loan early. That loan had been used to assist the school as the new Chief Financial Officer (CFO), Dr. DeAnna Smith, worked with university leadership on the school’s finances. Also in May 2026, the University of Montevallo Board of Trustees voted to approve the appointment of Dr. Michelle Johnston as the next president. Johnston’s appointment marked the university’s first female president. S&P’s report noted that though there have been recent leadership changes, the current team brings “significant experience and is well positioned to continue advancing the university’s strategic and financial objectives.” S&P report details In the August 2026 review, S&P affirmed its A- credit rating for UM, which is an investment-grade rating and within the strong category in the rating system, according to UM officials. UM officials said S&P highlighted the university’s “consistent improvement in graduation and retention rates over the past 3 years” in the research update. The report specifically noted that enrollment growth was driven by the strong reception of the school’s nursing program, which launched in fall 2024, and the university’s first doctoral program, the Doctor of Education in educational leadership, both of which contributed to the financial improvement of UM. The report also addressed recent financial concerns, noting “a trend of operating deficits.” These operating deficits were described as “significant full accrual” and were between 6-10% of expenditures during the 2023-2025 fiscal years. In the report, S&P said it expects the deficits to improve to near break-even levels over the outlook period, and that the university’s high retention rate and state support as Alabama’s only public liberal arts institution contributed to the overall financial well-being of the university. “Management has enacted several initiatives to improve the university’s financial performance, including enhanced budgeting practices and better efficiency with financial aid offerings. In addition, the university has eliminated 24 positions and, as noted earlier, removed men’s and women’s tennis and swimming from its athletic teams,” S&P wrote in the report. “We expect improvement in fiscal 2026 toward breakeven with further progress in fiscal 2027…” University response “A strong rating improves the University’s ability to utilize financial resources to meet the needs of its students. The UM Foundation owns more than $80 million in total assets and has exceeded more than $1 million in annual giving for the past seven years. The University also received a state appropriation of $1.8 million from Alabama’s Education Trust Fund during the current fiscal year,” the university wrote. “We’re incredibly proud to retain our S&P investment-grade rating,” Johnston said. “The University of Montevallo has a unique mission in higher education in the state of Alabama, and we are getting a lot of attention for being the only college in the state ranked in the top 10 in U.S. News & World Report’s Best Value rankings in each of the past five years. That recognition reflects how focused we are on what matters most — sending graduates into the world equipped by a liberal arts education to lead in their professions, serve their communities, and thrive in their personal lives.” Get news alerts in the Apple App Store and Google Play Store or subscribe to our email newsletter here. 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