Mount Aloysius College, PA Bond Rating Outlook Revised To Negative On Lower Enrollment


CHICAGO (S&P Global Ratings) Feb. 7, 2019--S&P Global Ratings has revised its 
outlook to negative from stable on Pennsylvania Higher Educational Facilities 
Authority's series 2016-OO4; 2011-JJ1; and 2011-R1 revenue bonds, issued for 
Mount Aloysius College (the college) as well as on the issuer credit rating 
(ICR) on Mount Aloysius College, Pa. 
At the same time, S&P Global Ratings has affirmed its 'A-' long-term rating on 
the college's outstanding bonds and ICR. 

"The negative outlook reflects our opinion of the college's continued 
pressures on enrollment--with fall 2018 being its fourth consecutive year of 
declining total full-time equivalent enrollment--as well as management's 
expectation that declines could continue through fall 2019, coupled with 
weakening matriculation," said S&P Global Ratings credit analyst Gauri Gupta. 
"Also, due to a change in the counting method for freshmen applications, the 
college now reports very weak selectivity, relative to what we had been 
reporting in the past, which further adds pressure to the overall enterprise 
profile." 

We could take a negative rating action if enrollment and demand pressure were 
to continue beyond management's expectation such that net tuition revenue 
growth remains negative and the college takes above average supplemental draws 
to support operations. We would also view a return to full-accrual deficit 
operations negatively. 

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