Southern Illinois University Bond, COP Ratings Lowered To 'BBB' On Weakening Credit Metrics; Off Watch; Outlook Negative

NEW YORK (S&P Global Ratings) Dec. 22, 2016--S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) to 'BBB' from 'BBB+' on Southern Illinois University Board of Trustees' housing and auxiliary facilities system (HAFS) revenue bonds, and certificates of participation (COPs), issued for Southern Illinois University (SIU). At the same time, we removed the ratings from CreditWatch, where they were placed with developing implications on Nov. 15, 2016. The outlook is negative. "The one-notch rating downgrade is based on a deterioration of the university's underlying credit fundamentals due to the continued uncertain state funding environment," said S&P Global Ratings credit analyst Shivani Singh. We view both the HAFS and the COPS bond security pledge as equivalent to an unlimited

...NEW YORK (S&P Global Ratings) Dec. 22, 2016--S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) to '###' from '###+' on Southern Illinois University Board of Trustees' housing and auxiliary facilities system (HAFS) revenue bonds, and certificates of participation (COPs), issued for Southern Illinois University (SIU). At the same time, we removed the ratings from CreditWatch, where they were placed with developing implications on Nov. 15, 2016. The outlook is negative. "The one-notch rating downgrade is based on a deterioration of the university's underlying credit fundamentals due to the continued uncertain state funding environment," said S&P Global Ratings credit analyst Shivani Singh. We view both the HAFS and the COPS bond security pledge as equivalent to an unlimited student-fee pledge and therefore we rate both the same. We placed SIU on CreditWatch in November in connection with our review of the Higher Education Scoring Model following the identification...

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