University Of North Alabama Bond Rating Outlook Revised To Negative Due To Inability To Grow Resources

CHICAGO (S&P Global Ratings) April 20, 2018--S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A' long-term rating on the University of North Alabama (UNA)'s series 2014 bonds. "The negative outlook reflects the persistent decline of financial resources of the university as measured by unrestricted net assets relative to operations and debt," said S&P Global Ratings credit analyst Gauri Gupta. "The university has continued to use internal resources to fund capital projects, which has led to gradual decline in resources over the past few years, weakening the balance sheet resources." Given the future deferred maintenance and capital needs, we believe that there is continued pressure of the university resources, which could lead to balance sheet resources

...CHICAGO (S&P Global Ratings) April 20, 2018--S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A' long-term rating on the University of North Alabama (UNA)'s series 2014 bonds. "The negative outlook reflects the persistent decline of financial resources of the university as measured by unrestricted net assets relative to operations and debt," said S&P Global Ratings credit analyst Gauri Gupta. "The university has continued to use internal resources to fund capital projects, which has led to gradual decline in resources over the past few years, weakening the balance sheet resources." Given the future deferred maintenance and capital needs, we believe that there is continued pressure of the university resources, which could lead to balance sheet resources that are no longer commensurate with the current rating level. The negative outlook reflects our expectation that over the next two years, given its breakeven margins and enrollment challenges, the university's...

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