Standard & Poor's Ratings Services said it has revised its rating outlook to positive from stable on debt issued by the University of Wyoming Trustees secured by a net revenue pledge of the university, which it views as an unlimited student fee. At the same time, Standard & Poor's affirmed the AA-minus rating on various debt issues.
"The positive outlook reflects our assessment of the university's exceptionally strong and consistent state operating and capital support, role as the state's only four-year public university, and consistently positive financial operating results," said Standard & Poor's credit analyst Blake Cullimore. "Enrollment has been growing slowly and demand continues to respond well to the enrollment office's efforts to increase applications and convert acceptances to matriculants," said Cullimore.
Standard & Poor's could consider a positive rating action during the outlook period if the university's operating, enrollment, and demand metrics remain consistent and state support remains strong. Other positive rating factors would include increased endowment levels commensurate with current rating category medians, continued prudent debt management, and the maintenance of a low maximum annual debt service burden. A negative rating action is unlikely during the two-year outlook period, according to Standard & Poor's.
