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Bond ratings for Sweet Briar College have increased for the third year in a row, the college reported Monday, continuing on a positive financial outlook trend since it nearly closed four years ago.
S&P Global Ratings, a financial analytics corporation, raised SBC’s long-term credit ranking from B+ to BB- in 2019 and changed its rating outlooks for the college from stable to positive. Sweet Briar’s rating was at BBB- before it almost closed in 2015, bringing its rating down to CCC. Its rating has been increasing gradually since 2016.
The ratings indicate an agency’s likelihood to repay its debts. The highest rating an institution can receive is AAA. Three letters are better than two or one and pluses are better than minuses so the shift from a B+ to a BB- brings Sweet Briar one step closer to BBB, which would bump its rating up to investment grade and significantly lower its interest rate on bonds.