...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 opinion of the continued full-accrual deficit in fiscal 2018 that deteriorated from the operating results of fiscal 2017 and was weaker than management's projection. It also reflects our view that declines in liquidity and endowment, coupled with operating deficits and above-average endowment spending, could continue, leading to a credit profile more consistent with a lower rating over the next year or two. However, we understand management hopes to control these pressures through enrollment and revenue growth as well as cost containment, and it expects improved operations and reduced endowment spending 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; weakened selectivity and matriculation...
