...S&P Global Ratings revised its outlook to negative from stable and affirmed its '###+' rating on Missouri Southern State University's (MSSU) auxiliary enterprise system revenue bonds. The negative outlook reflects our opinion of additional debt that MSSU management is contemplating issuing within the next two years to fund another residence hall on the campus. In our view, additional debt would pressure MSSU's already low available resources ratios to levels inconsistent with the current rating. Without growth in available resources at least commensurate with additional debt, we could lower the rating on MSSU if there is a new issuance. We assessed MSSU's enterprise profile as adequate, characterized by increasing enrollment following a devastating tornado in May 2011, as well as modest improvement in selectivity, and offset by what we consider weak graduation rates and limited fundraising history. We assessed MSSU's financial profile as adequate, characterized by persistent full-accrual...
