Moody's Report

December 2009 Report - Moody's Investor Services

PDAD&C#52, 2009-10

MEMORANDUM

To: PDAD&C
From:        Cheryl Misak, Vice-President and Provost
Date: December 15, 2009
Re: Moody's Report
  

Please find attached a copy of the December 2009 Report from Moody's Investor Services. Below is an excerpt from the Report.

Summary Rating Rationale

The Aa1 debt and issuer ratings assigned to the University of Toronto (U of T) reflect the university's consistent operating performance, adjusted to account for the variability of investment returns, and moderate debt burden. Despite the recent investment losses in U of T's endowment, Moody's believes that the university retains strong fiscal flexibility and is able to make ongoing adjustments to its budgets in order to ensure the posting of satisfactory fiscal outcomes. The rating also takes into account U of T's strong market position as Canada's largest post-secondary institution and a national leader in research. Moreover, despite the investment losses, U of T's strong balance sheet illustrates the magnitude of the university's financial resources in relation to its obligations, providing a measure of safety for debenture holders and supporting the high investment-grade rating.

Rating Outlook

The outlook is stable.