...La Salle University's Long-Term Issuer Default Rating (IDR) and bond ratings reflect the university's financial asset base that, while still adequate relative to the university's significant debt, has declined notably in recent years. Leverage, measured as available funds to pro forma adjusted debt, stood at 43% at fiscal year-end 2023 (FYE 2023), against an average of 63% for the prior five years. The weaker balance sheet is largely the result of expense cuts that did not match the magnitude of multiyear revenue declines from a shrinking student base (total headcount was 3,556 in fall 2023, down 32% from 5,193 in fall 2018) in the highly competitive and demographically unfavorable Pennsylvania market. The ratings also take into account Fitch Ratings' opinion that prior vacancies, interim appointments and turnover in several key management roles contributed to La Salle's recent hardships, although all key positions (excluding the director of financial aid) are now staffed with permanent...
