Lake Michigan College Board of Trustees Accepts AA+ Credit Rating from Standard & Poor's

The Lake Michigan College Board of Trustees has accepted a comprehensive ratings report from Standard & Poor's (S&P) that assigns the College an AA+ credit rating with a stable outlook. This distinction places Lake Michigan College among an elite group, as it is one of only two community colleges in Michigan to achieve this top-tier AA+ rating.

In February 2025, Standard & Poor's conducted a thorough financial evaluation of Lake Michigan College and reaffirmed its general creditworthiness with the AA+ rating, which indicates strong to very strong financial capacity.

"This strong rating reflects the College's continued fiscal strength" said Dr. Trevor Kubatzke, President of Lake Michigan College. "As importantly, it also serves as an independent validation to the community that the College is a responsible steward of public funds, and particularly of the property tax dollars that make up more than half of our annual operating revenue."

The AA+ rating demonstrates Lake Michigan College's commitment to managing its resources with care, transparency, and long-term planning. S&P's rating is based on a rigorous review process that includes analysis of financial statements, historical and projected data, internal policies, and interviews with Kelli Hahn, Lake Michigan College’s Chief Financial Officer, regarding financial performance, planning, and controls.

Key Strengths Highlighted by S&P
Standard & Poor's indicated that their rating reflects Lake Michigan College's strong enterprise risk profile and very strong financial risk profile. Specific strengths noted include:

Enterprise Risk Profile:

• Rebounding enrollment from pandemic losses
• Sizable service area population of approximately 789,000 residents
• Experienced leadership team with succession planning in place

• History of reporting positive margins, supported by proactive planning and strategic initiatives
• Comprehensive financial management policies and practices
• Low overall debt burden as a percentage of market value and rapid debt amortization
• Solid financial performance with financial resources and manageable debt burden
• Stable property tax base with diverse taxpayer concentration

• AAA: Highest rating; extremely strong financial capacity
• AA, A: Strong to very strong capacity but may be affected by adverse conditions
• BBB: Adequate capacity; lowest investment-grade rating