Moody’s Issues Favorable Credit Reviews on Hall Family Foundation, Nelson Gallery Foundation
Moody’s Issues Favorable CreditReviews on Hall Family Foundation,Nelson Gallery FoundationOn April 23, 2013 is was reported that Moody’s gave apositive credit rating to two non-profit organizations.Moody’s is headed by CEO Ray McDaniel, President ofAnalytics Mark Almeida, and more.
April 23By STEVE ROSENThe Kansas City StarTwo of Kansas City’s major non-profit foundations have earned positive creditreviews from Moody’s Investors Service.The credit agency singled out the Hall Family Foundation and the NelsonGallery Foundation for their high A ratings and stable outlooks.The ratings on the two foundations are somewhat related because of the HallFamily Foundation donation agreement that “ensures that timely debt servicesare made to investors” on bonds issued in 2004. After a $3 million paymentapplied to the principal of those bonds in December 2012, the Hall FamilyFoundation is currently obligated to pay interest and principal on the remaining$57 million, Moody’s said.The Hall foundation, formed by the founding family of Hallmark Cards, is one ofthe largest private foundations in the Kansas City area. Grants support childrenand families, education, the arts and community development.
According to Moody’s, the foundation’s Aaa rating reflects its “excellent balancesheet coverage of debt and operations, exceptional liquidity and prudent fiscalmanagement.” By law, the foundation must spend 5 percent of its endowment.Moody’s also affirmed the Nelson Gallery Foundation’s Aa3 rating, attributing itto “healthy operating cash flow margins, support from the Hall FamilyFoundation for debt service on the 2004 bonds, prudent debt and expensemanagement, strong liquidity and our expectation that the gallery will see futurefundraising success.”Moody’s noted the gallery increased both attendance and membership in its2012 fiscal year. Total attendance climbed to 418,922 last year, up from 370,527the previous year. Membership increased about 11 percent last year to 11,853.Original Article.