Moody's assigns triple-A rating to University of Cambridge Moody's noted that Cambridge's cash flow has been strong, allowing the university to fund capital projects without the use of debt. But, the university has been given the green light to borrow up to £350m which, said Moody's, would "result in a modest leverage relative to peers." "It is expected that any such borrowings would be applied towards further investment in research facilities, accommodation and other university assets," said Moody's. "The largest investment currently being considered by the university would be the development of a site in the northwest of Cambridge, including the creation of 1,500 housing units for research staff and 100,000 square metres of research space," said the agency. Two years ago, it emerged that Cambridge was considering issuing bonds of up to £300m for the first time in its history, which the university said would be used to fund building projects. The university has been granted planning permission for a £1bn development in North West Cambridge, which will provide accommodation for staff and students as well as open spaces for sport and leisure. Other universities to have issued bonds in the past include Lancaster. While Cambridge has been awarded an 'AAA' rating and 'stable' outlook, the UK was recently warned by ratings agency Fitch that it was edging closer to losing its triple-A rating due to weak growth and ballooning government borrowing.