MRIGlobal, which has been grappling with declining research funding from the federal government, has received a mostly favorable review from Moody’s Investors Service.
The credit rating agency has revised the business and financial outlook on the Kansas City-based research institute to stable from negative.
Moody’s said the stable outlook reflects MRIGlobal’s “demonstrated ability to align its operations, in particular, its expense base, in light of declining federal research funding.”
A spokesman for the nonprofit research institute could not be reached for comment Tuesday.
MRIGlobal, formerly known as Midwest Research Institute, is headquartered at 425 Volker Blvd. near the Country Club Plaza. It also has sophisticated laboratories in Colorado, Florida, Virginia and Maryland.
The organization is a co-manager of the federally owned National Renewable Energy Laboratory in Golden, Colo. The facility is the government’s primary research lab for renewable solar and wind energy.
Moody’s left unchanged its Baa2 rating on $20 million in MRIGlobal revenue bonds.
The credit agency said its bond rating reflects management’s ability at MRIGlobal to “respond to a challenging operating environment with relatively balanced operations, its strengthening balance sheet and the organization’s reputation” as co-operator of the Colorado energy lab.
But Moody’s raised concerns over MRI Global’s “highly concentrated revenue base with funding from various federal agencies and the immensely competitive landscape for federal research dollars.” According to Moody’s, MRIGlobal generated about $93 million in revenue in its 2014 fiscal year, with nearly 95 percent coming from the federal government.