Missouri Southern State University; Public Coll/Univ - Unlimited Student Fees

S&P Global Ratings has lowered its rating on Missouri Southern State University's (MSSU) existing auxiliary enterprise system revenue bonds to 'BBB-' from 'BBB'. The outlook is negative. The downgrade reflects our opinion of recent enrollment declines, which have persisted through fall 2020 as the university welcomed its smallest freshmen classes, along with weakening demand metrics such as selectivity and matriculation. The declines in enrollment are related to demographic pressures of the region, which are elevated due to the ongoing global pandemic. Management expects declines to continue, though it expects that its strategies will help narrow the pressures. In addition, the university has sustained operating deficits for at least last five fiscal years, including 2020, and expects to continue to generate

...S&P Global Ratings has lowered its rating on Missouri Southern State University's (MSSU) existing auxiliary enterprise system revenue bonds to '###-' from '###'. The outlook is negative. The downgrade reflects our opinion of recent enrollment declines, which have persisted through fall 2020 as the university welcomed its smallest freshmen classes, along with weakening demand metrics such as selectivity and matriculation. The declines in enrollment are related to demographic pressures of the region, which are elevated due to the ongoing global pandemic. Management expects declines to continue, though it expects that its strategies will help narrow the pressures. In addition, the university has sustained operating deficits for at least last five fiscal years, including 2020, and expects to continue to generate full accrual deficits for the next few years as it works through the current operating challenges and its strategic initiatives to reverse these trends. We also recognize that balance...

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