Moody's lifts University of Ontario debt

Moody's Investors Service said it upgraded the debt rating assigned to the debentures issued by the University of Ontario Institute of Technology to A2 with stable outlook from Baa1 with a positive outlook, affecting approximately C$200 million in debentures.

The agency said the rating action is based on improvements in the University of Ontario Institute of Technology's financial position since the signing of a transfer payment agreement in August 2011 between the university and the Province of Ontario for permanent debenture grant payments. Under the agreement, the province will provide C$13.5 million in annual debenture grants earmarked to support the university's debenture payments of roughly C$16.5 million.

"Since the signing of the Transfer Payment Agreement, UOIT's financial position has improved, and the university has reduced its reliance on its revolving credit facility," said Jennifer Wong, Moody's assistant vice-president and lead analyst for the University of Ontario Institute of Technology, in a news release.

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