Nevada State College 2019 Student Housing Bond Rating Lowered To 'B-' From 'BB-' Due To Very Low Occupancy, Default Risk

CENTENNIAL (S&P Global Ratings) Dec. 10, 2020--S&P Global Ratings lowered its long-term bond rating to 'B-' from 'BB-' on Public Finance Authority (PFA), Wis.' series 2019 student-housing revenue bonds, the proceeds of which were used to finance the construction of student housing on the campus of Nevada State College (NSC), a member of the Nevada System of Higher Education (NSHE). At the same time, we removed the rating from CreditWatch with negative implications, where it had been placed on Sept. 16, 2020. The outlook is negative. "The three-notch downgrade reflects our view of the uncertainty and financial risk the project faces due to its significantly lower occupancy rate and corresponding lower rental revenue at its residence facility as a direct

...December 10, 2020 CENTENNIAL (S&P Global Ratings) Dec. 10, 2020--S&P Global Ratings lowered its long-term bond rating to 'B-' from '##-' on Public Finance Authority (PFA), Wis.' series 2019 student-housing revenue bonds, the proceeds of which were used to finance the construction of student housing on the campus of Nevada State College (NSC), a member of the Nevada System of Higher Education (NSHE). At the same time, we removed the rating from CreditWatch with negative implications, where it had been placed on Sept. 16, 2020. The outlook is negative. "The three-notch downgrade reflects our view of the uncertainty and financial risk the project faces due to its significantly lower occupancy rate and corresponding lower rental revenue at its residence facility as a direct result of COVID-19," said S&P Global Ratings credit analyst Amber Schafer. "In our opinion, the project's financial flexibility is extremely limited, and its current operations are not sustainable; which we anticipate could...

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