...S&P Global Ratings affirmed its '##+' rating on the Virginia College Building Authority's revenue bonds, issued for Regent University. The outlook is negative. The negative outlook reflects our expectation that declines in liquidity and endowment, coupled with a sustained trend of sizable operating deficits and aggressive endowment spending, could continue, leading to a credit profile more consistent with a lower rating over the next year or two, though management hopes to control these pressures through enrollment and revenue growth in the next couple of years. We assessed Regent's enterprise profile as very strong, characterized by healthy enrollment growth in recent years; good student quality; improving demand metrics, although selectivity is still somewhat limited; and overall modest management policies and practices. We assessed Regent's financial profile as vulnerable, with a history of sizable operating deficits, a history of exceeding the 5% endowment spending level, and an above-average...
