Moody's upgrades North Idaho College's bond rating

COEUR d’ALENE — Moody's Ratings has upgraded North Idaho College’s outlook from negative to stable. 

The report from Moody’s noted that NIC had $8 million in total debt outstanding as of June 30.  

The update to a stable rating was driven by stabilization in the college's governance, which the ratings agency said “has substantially lowered the possibility of accreditation loss and provided for greater management predictability.” 

NIC President Nick Swayne said he is encouraged by the news. 

“Moody’s is a big company. So, for them to see at the national level the contentiousness, the lack of focus and the divisiveness of the last board’s issues are now resolved, and that this new board is focused on the mission of the college and community, that’s the positive message,” Swayne said.  

Moody’s placed NIC’s bond ratings under review for downgrade in December 2022. In February 2023, Moody's dropped the rating to A3 from A1. Last April, the agency rated NIC at a Baa1 issuer rating with a negative outlook. 

Although NIC leadership doesn’t have any plans that would require borrowing in the near future, Swayne said the upgrade is a step in the right direction.  

“It's more symbolic or psychological that Moody’s is seeing the changes and seeing them in a positive way,” Swayne said. “For that to come fairly soon after the new board comes in very active and proactive at solving the problems of the last board, that’s a really good sign.” 

He hopes the rating will continue to rise. 

Sarah Garcia, NIC’s vice president of business and finance, said she felt decision was a vote of confidence in the college. 

“It is a great acknowledgment from an external entity of the progress we have made as an institution and a testament to the hard work of the college and community,” Garcia said.