University of North Alabama's Series 2019C Refunding General Fee Revenue Bonds Assigned 'A' Rating

SAN FRANCISCO (S&P Global Ratings) Oct. 8, 2019--S&P Global Ratings assigned its 'A' rating to the University of North Alabama's (UNA) $24 million series 2019C refunding general fee revenue bonds. The outlook remains negative. "The rating reflects our view of UNA's strong enterprise and financial profiles," said S&P Global Ratings credit analyst Mary Ellen Wriedt. We assessed UNA's enterprise profile as strong, characterized by stable enrollment and management's expectation of enrollment growth and improved graduation and retention rates. However, we recognize that selectivity has weakened from fall 2016. We assessed UNA's financial profile as strong, characterized by growing net tuition revenue and improving operating performance, with fiscal 2018 ending with a full-accrual surplus. The pro forma debt burden remains manageable.

...October 8, 2019 SAN FRANCISCO (S&P Global Ratings) Oct. 8, 2019--S&P Global Ratings assigned its 'A' rating to the University of North Alabama's (UNA) $24 million series 2019C refunding general fee revenue bonds. The outlook remains negative. "The rating reflects our view of UNA's strong enterprise and financial profiles," said S&P Global Ratings credit analyst Mary Ellen Wriedt. We assessed UNA's enterprise profile as strong, characterized by stable enrollment and management's expectation of enrollment growth and improved graduation and retention rates. However, we recognize that selectivity has weakened from fall 2016. We assessed UNA's financial profile as strong, characterized by growing net tuition revenue and improving operating performance, with fiscal 2018 ending with a full-accrual surplus. The pro forma debt burden remains manageable. Available resources have declined from historical levels but improved in fiscal 2018. We believe that the university has limited cushion to absorb...

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