Regent University Outlook Revised To Negative On Poor Operating Performance; 'BBB+' Rating Affirmed May 13
- Language: English
- Published: May 2013
Standard & Poor's Ratings Services has affirmed its 'BBB+' rating on Virginia College Building Authority's revenue bonds issued for Regent University. The outlook is stable. While we consider Regent's historically poor operating performance a negative credit factor, the university has increased enrollment over the past three years and is focusing on growing its net tuition revenue base while maintaining discipline regarding expenditures. Furthermore, given the growth in enrollment and revenue base, management has been able to decrease the historically high level of endowment spending to a more normalized rate, at slightly more than 5% in fiscal 2011, or a $10.5 million draw, compared with $15 million, or an approximately 6.5% draw in fiscal 2010. Regent had posted operating deficits ranging...
Companies mentioned in this report are: Regent Univ
Action: Outlook: Stable
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