Moody’s investor service has granted an A3 rating to the university’s planned $12,415,000 bond offering.

The rating is a product of the university’s substantial financial reserves compared to similar faith-based institutions and the university’s “very good asset liquidity,” according to the rating service.

An A3 rating translates to the offering being a low-credit risk.

According to the report issued by Moody’s on Nov. 30, the bond offering has been earmarked for “additional improvements to the science center and Wildcat Stadium, among others; and to pay costs of issuance.”

Moody’s noted however that ACU might face a lower rating on future bond offerings if it does not achieve viable tuition revenue growth or lose the liquidity it currently holds.

In 2016, Moody’s listed key challenges for the university as “thin operating cash flow due to investments in new strategic initiatives, reliance on endowment and reserves for capital and financial aid support, as well as a historically complex debt structure” and re-affirmed some of the same challenges in the 2017 report.

The report was compiled by Mary Cooney, a lead analyst for higher education at the New York-based rating agency.