Harvard University has retained its “triple-A” credit rating—the highest possible—from two major rating agencies as it prepares to issue about $1 billion in new bonds next week. The favorable rating allows Harvard to borrow at low interest rates.

The two new bond issues of $730 million and $300 million—a net increase of about $300 million—will bring the University’s total outstanding debt to $6.6 billion, which is more than double the amount outstanding in 2006.

According to Moody’s Investor Service, the University’s liquidity situation—which affects its ability to repay creditors—has improved since the endowment’s precipitous drop in 2009 as Harvard’s money managers have said they have become more cognizant of the University’s need for cash.

“We believe the Harvard Management Company, which oversees the endowment’s investment management, and the University have become increasingly integrated in assessing organizational liquidity needs,” the Moody’s report stated.

It added that in fiscal year 2010, the University reported $9 billion in unrestricted cash and investments that could be liquidated within one month’s time.

Harvard’s new debt would be used to support the ongoing renovation of the Fogg Museum as well as refinance existing debt obligations, according to Moody’s.

But both Moody’s and Standard & Poors, another rating agency, emphasized that the University intends to lessen its capital spending this year and next.

As early as 2009, University President Drew G. Faust announced Harvard’s intention to cut as much as half of its capital budget in future years.

In contrast to its strategy for the past decade, when much of Harvard’s new construction was financed primarily by borrowing, the University is now focusing on obtaining private donations to finance building projects, such as the Fogg renovation, which will be supported by donor contributions as well as the bond sale.

A new Harvard Business School building in Allston announced last month will be financed by a $50 million gift from Indian billionaire Ratan N. Tata.

Additionally, Executive Vice President Katherine N. Lapp is implementing a new capital planning process to further centralize decisions about how financial resources are best utilized.

—Staff writer William N. White can be reached at wwhite@fas.harvard.edu.