(Bloomberg) -- Harvard University, the richest U.S. university, is tapping the credit markets for as much as $1.1 billion at a time when it can lock in lower interest rates.

Up to $573 million in revenue bonds will be sold through a state agency and the proceeds will be used to refinance outstanding debt, Moody’s Investors Service said this week in a report. The ratings company said Harvard will also sell $500 million in taxable bonds for “eligible corporate purposes.”

The coronavirus pandemic is upending U.S. higher education. Small colleges that are weak financially and dependent on tuition could be threatened with closure as campuses remain devoid of students. The wealthiest colleges may face endowment losses and expected declines in fundraising.

Harvard, with a $40.9 billion endowment as of June 2019, last month forecast a decline in revenue and a slowdown in philanthropy due to the economic impact of the outbreak. It also said it would refund room and board for students ordered to leave campus and pay thousands of dining, custodial and administrative workers through May 28.

Other schools have announced measures to restrain finances, including Princeton University. The school in a letter Wednesday said it is suspending faculty and staff salary increases and managing staffing levels to sustain its current workforce “for as long as possible.”

Harvard declined comment on the bond sales.

“This is part of long-term planned debt activity,” said Susan Shaffer, vice president at Moody’s who specializes in higher education. “Their liquidity is ample. They are very well managed and had already put into place, as most top-notch universities do, regular scenario analysis for potential recessionary conditions or other things that could cause operational stress. This could be smart timing because interest rates are low.”

Harvard is prepared to withstand a recession and the interruption of its operations, Chief Financial officer Thomas Hollister said on March 23.

The endowment lost 27% of its value in the last big downturn, forcing the university to borrow money to shore up its cash position.

“The university is in a much better position than we were following the 2008 financial crisis with respect to liquidity and the capacity to withstand stress,” Hollister said in last month’s statement.

The school has $5.2 billion in tax-exempt and taxable bonds outstanding, according to its most recent financial report.

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