Standard & Poor’s revised the outlook to stable from negative and affirmed the BB-plus long-term rating on the Massachusetts Development Finance Agency’s revenue bonds that were issued for Eastern Nazarene College of Quincy, Mass.
“The outlook revision reflects a rebound in enrollment and demand, which management expects will translate into break-even operating performance for fiscal 2012,” said rating analyst Bobbi Gajwani.
The revision also reflects the college’s increased liquidity resulting from the sale of some of its real estate assets.
Though the college has generated deficits on an accrual basis for the past three years, it has reported surpluses on a cash basis, which Standard & Poor’s views favorably.
“We expect stable enrollment and continued conservative fiscal management will enable the college to minimize deficits,” Gajwani said.
