Rhodes continues to be in sound financial position in spite of the health crisis and significant economic disruption caused by the COVID-19 outbreak. Rhodes has balanced its budget for 46 consecutive years and was recently rated a2 by Moody’s Investors Service. Rhodes is rated A+ by Standard & Poor’s.
From a financial perspective, we expect to be able to fully deliver all instruction and provide a robust array of services to our students in the upcoming academic year despite a very challenging fiscal environment. Although our financial resources are not limitless, we have maintained full employment since the beginning of the pandemic and anticipate we will be able to continue to do so for the foreseeable future.
The College’s conservative fiscal discipline over the years has resulted in healthy liquidity, ample reserves and a manageable debt burden, enabling Rhodes to be in position to weather economic downturns. The College has not employed a line of credit to fund operations in several decades and does not forecast a need for a credit line in the near future.
Like virtually all investment portfolios, the College’s endowment suffered losses in the first quarter of 2020. Even with the plunge in financial markets, our endowment still stands in excess of $300 million. Additionally, the College benefits from ongoing generous philanthropy from loyal donors.
As you’ve seen if you’ve been able to visit our beautiful campus, our facilities are well maintained and have very little deferred maintenance. Taking care of our physical plant will continue to be an important priority as we grapple with the effects of the coronavirus spread.
We remain resolutely committed to a high quality experience for our students, sustaining our workforce, and taking care of our physical plant. Because of our financial viability, we are situated to deliver on that commitment in the face of the continued uncertainty and unprecedented upheaval in our collective lives.