Brock maintains A High credit rating, trends upward

Despite another challenging year for the post-secondary sector, Brock University has improved its trends rating and retained its A High credit rating from the Dominion Bond Rating Service (DBRS) Morningstar.

DBRS released its rating report on the University this week and gave Brock the A High rating for the sixth straight year. It also changed Brock’s trends ratings from ‘negative’ to ‘stable’ for Issuer Rating and Senior Unsecured Debentures.

This improvement in trend ratings reflects DBRS’s view that Brock’s continued sound fiscal management combined with a modest increase in enrolment forecast will lead to better financial risk metrics than previously expected.

Brock University Board of Trustees Chair Mark Arthur said the upgraded rating is an important distinction.

“The DBRS Morningstar ratings are an important indicator of an institution’s financial health, and this step forward to stable reflects Brock’s hard work over a period of unprecedented challenge for the university sector,” said Arthur. “This is a positive key indicator as we look to the future.”

Brock Interim President Lynn Wells said the DBRS rating is a reflection of hard work across the University.

“The impact of the COVID-19 pandemic on Brock and on the post-secondary sector as a whole has required us to make some significant financial decisions over the past two years,” said Wells. “Our ability to maintain our A (high) rating and improve our trend during this difficult time points to the hard work of our Finance team and of all those around the University who have prudently managed their budget areas to ensure Brock’s continued financial stability.”

Despite student fees being down by four per cent, Brock reported a higher-than-expected revenue surplus, largely on account of a one-time COVID-19 support funding from the provincial government. Some ancillary revenue was recovered with the resumption of on-campus learning in Fall 2021 and savings were realized on personnel costs through ongoing cost-mitigation strategies.

More details are available in DBRS’s press release and to learn more about Brock’s financial information and view a list of the University’s DBRS Morningstar debt ratings, visit the University Financial and Budget Information website.

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