Matt Fajack, the vice chancellor for finance and administration, said the debt financed important campus buildings, such as residence halls and research facilities.
“It is appropriate debt,” Fajack said.
Smith said, despite the debt, UNC has an “Aaa” credit rating — the highest possible credit rating.
Smith said UNC’s debt, issued through the bond market, is similar to other Aaa rated universities, like the University of Virginia or the University of Michigan.
“The numbers are normal, and we’ve got the highest credit rating,” Smith said.
Moody’s, one of the institutions that assigns credit ratings, said in a statement the rating was a reflection of UNC’s multibillion-dollar financial resources, consistent operating performance and continued donor support, among other things.
Compared to other schools’ financial debt, UNC is right on track, Smith said. Moody’s website says University of Virginia has $1.5 billion in debt and University of Washington has $2.4 billion.
“We’re not an outlier,” Smith said. “It’s not unusual.”