...S&P Global Ratings' rating on Missouri Southern State University's (MSSU) auxiliary enterprise system revenue bonds is '###+' and the outlook remains negative. The negative outlook reflects our opinion of continued operating deficits and a recent enrollment decline, which management attributes to significant increases in tuition. Though management expects moderate growth going forward, declining demographics in the region could pose a challenge. In addition, though financial resources have grown nicely over the past two years, they remain somewhat low and could be pressured by potential additional debt for a new residence hall in the next two years. We assessed MSSU's enterprise profile as adequate, characterized by a 6% increase in enrollment since fall 2014, following a devastating tornado in May 2011, offset by recent enrollment declines and what we consider weak graduation rates. We assessed MSSU's financial profile as adequate, characterized by persistent full-accrual operating deficits...
