Emporia State University, KS Revenue Bond Rating Lowered To #A-# From #A# On Deteriorating Financial Resource Ratios

Stocks and Financial Services Press Releases Thursday May 17, 2018 09:25
CENTENNIAL--17 May--S&P Global Ratings

CENTENNIAL (S&P Global Ratings) May 16, 2018--S&P Global Ratings lowered its long-term rating on Emporia State University (ESU)'s series 2010J revenue bonds issued for ESU by the Kansas Development Finance Authority (KDFA) to 'A-' from 'A'. S&P Global Ratings also withdrew its ratings on ESU's 2001B student recreation facility revenue bonds and on the series 2005F residence hall revenue bonds because these bonds were refunded with proceeds of the series 2017D bonds.

The downgrade reflects our view of a material deterioration in the university's financial resource ratios due to the issuance of $36.075 million series 2017D bonds issued in December 2017 (not rated). "The issuance more than doubled ESU's total debt and the university's resulting weaker financial resource ratios are more consistent with those of other 'A-' rated institutions," said S&P Global Ratings credit analyst Amber Schafer. We believe ESU's enrollment base and consistent financial operations support the 'A-' rating. The outlook is stable.

The stable outlook reflects our expectation that during the two-year outlook period, ESU's demand profile will stabilize; financial operating results will be at least breakeven on a full-accrual basis, state appropriations will remain relatively stable, and resources will remain consistent. No additional debt is expected. Consideration of a positive rating action during the outlook period would require strengthening in ESU's enrollment and demand profile, and growth of financial resources, all with consistent positive financial operations.

We could take a negative rating action during the outlook period if enrollment continues to fall such that operational performance is negatively pressured, if available resources weaken materially, or additional debt is issued, though we do not currently expect this, without commensurate growth in available resources. Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com.

All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.

Latest Press Release

KTC gives privileges to members at affiliated shops of Sport Revolutions with a chance of collective distance running KTC-REV The Ultimate 90 Days Challenge by LET#S RACE THAILAND.

"KTC" or Krungthai Card Public Company Limited by Ms. Sireerat Corvanich, Vice President - Credit Card Business, invites KTC cardmembers to enjoy the privileges of KTC-REV Credit Card when they spend on products at affiliated shops of Sports Revolution...

Photo Release: SEC and BSA host Good IT Governance seminar

The SEC and the Business Software Alliance (BSA) jointly organized a seminar on "Good IT Governance: Risk Management and Data Responsibility" for more than 300 participants from listed companies, securities companies, and investment management companies...

Huobi Strategizes Market Penetration into Vietnam Rapidly Growing Blockchain Market

Huobi.Pro, the leading global digital asset exchange, which saw a cumulative annual turnover of US$850-billion in 2017, announced its grand strategy to tackle the Vietnamese market during their keynote speech at Blockchain Festival Vietnam. Frank Fan,...

Marlborough District Council Ratings Affirmed at #AA/A-1+#; Outlook Remains Stable

- Marlborough District Council (Marlborough)'s long-term plan calls for higher levels of capital expenditure during the next few years. We expect Marlborough to record modest after-capital deficits through the forecast period, though its debt burden will...

Taupo District Council Ratings Affirmed At #AA/A-1+#; Outlook Remains Stable

- Taupo's financial management, budgetary performance, and liquidity continue to support the ratings on the New Zealand-based district council. - We expect Taupo's debt burden to decline relative to revenues as the council maintains its strong operating...

Related Topics