Brevard College was downgraded by Fitch Ratings last week due to declining enrollment and negative operating margins for the last two fiscal years.
Fitch dropped $12.67 million of 2007 education revenue refunding bonds to BB from BBB-minus with a stable outlook. Standard and Poor’s and Moody’s Investors Service do not rate the college.
Brevard’s full-time enrollment fell 1.8% in 2007 and 2.1% in 2008, according to Fitch. Operating margins were negative in fiscal years 2007 and 2008, partly due to fluctuating enrollment. The college’s overall debt burden remains manageable at 5.5% of fiscal 2008 unrestricted operating revenues, Fitch said.
The four-year Methodist college located in western North Carolina was founded in 1934 and has about 700 undergraduates. It has no additional debt plans in the near term and has hired an enrollment consultant to boost applicants, Fitch said.
