...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. 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. We assessed UNA's enterprise profile as strong characterized by stable enrollment with expectation to grow for the next few years as well as graduation and retention rates. However, we recognize that selectivity has weakened due to the smaller...
