Regent University, VA Revenue Bond Rating Affirmed At 'BB+'; Outlook Remains Negative

SAN FRANCISCO (S&P Global Ratings) June 12, 2019--S&P Global Ratings affirmed its 'BB+' rating on the Virginia College Building Authority's revenue bonds, issued for Regent University. The outlook is negative. "The rating reflects our view of Regent's very strong enterprise profile and vulnerable financial profile," said S&P Global Ratings credit analyst Ying Huang. Regent's very strong enterprise profile is characterized by healthy enrollment growth in recent years; good student quality; weakened selectivity and matriculation rates in fall 2018, following an improving trend in the last few years; and overall modest management policies and practices. Regent's vulnerable financial profile reflects a history of sizable operating deficits, a history of extraordinary endowment spending exceeding 10% in the last few years, and an

...June 12, 2019 SAN FRANCISCO (S&P Global Ratings) June 12, 2019--S&P Global Ratings affirmed its '##+' rating on the Virginia College Building Authority's revenue bonds, issued for Regent University. The outlook is negative. "The rating reflects our view of Regent's very strong enterprise profile and vulnerable financial profile," said S&P Global Ratings credit analyst Ying Huang. Regent's very strong enterprise profile is characterized by healthy enrollment growth in recent years; good student quality; weakened selectivity and matriculation rates in fall 2018, following an improving trend in the last few years; and overall modest management policies and practices. Regent's vulnerable financial profile reflects a history of sizable operating deficits, a history of extraordinary endowment spending exceeding 10% in the last few years, and an above-average maximum annual debt service burden. In our view, available resources, while declining, remain sufficient for the rating level and help mitigate...

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