Summary: University of Southern California; Private Coll/Univ - General Obligation

S&P Global Ratings revised its outlook to negative from stable and affirmed its 'AA' long-term rating and underlying rating (SPUR) on University of Southern California's (USC or the university) revenue bonds. At the same time, S&P Global Ratings assigned its 'AA' long-term rating, with a negative outlook, to USC's $400 million series 2021A taxable bonds. The outlook revision reflects the further weakening in the available resource metrics relative to debt, primarily due to the costs of legal settlements and additional debt that, without significant growth in resources, could be inconsistent with the current rating. Additionally, we anticipate that financial operations will decline in fiscal 2021, primarily due to expenses associated with a legal settlement as well as pressures from the

...S&P Global Ratings revised its outlook to negative from stable and affirmed its '##' long-term rating and underlying rating (SPUR) on University of Southern California's (USC or the university) revenue bonds. At the same time, S&P Global Ratings assigned its '##' long-term rating, with a negative outlook, to USC's $400 million series 2021A taxable bonds. The outlook revision reflects the further weakening in the available resource metrics relative to debt, primarily due to the costs of legal settlements and additional debt that, without significant growth in resources, could be inconsistent with the current rating. Additionally, we anticipate that financial operations will decline in fiscal 2021, primarily due to expenses associated with a legal settlement as well as pressures from the COVID-19 pandemic, resulting in a significant deficit but are subsequently expected to return to positive margins. Since our last report, the university has reached an $852 million settlement regarding lawsuits...

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