Standard & Poor's revised its outlook on BBB-rated Iona College to stable from negative, citing improved financial ratios as the Catholic school battles enrollment pressures.
The college issues debt through the New York State Dormitory Authority.
S&P emphasized in its Nov. 10 action that the New Rochelle, N.Y. college, just north of New York City, could have its rating raised or lowered in the near future depending on how tuition and other revenue streams fare.
"We could raise the rating during the next two years if Iona were to stabilize enrollment, strengthen demand metrics significantly, generate solid operating surpluses, grow net tuition revenue, and improve financial resource ratios to levels above category medians," said S&P credit analyst Emily Avila in a statement. "We, however, could lower the rating over the same period if enrollment were to decrease significantly such that it negatively affects net tuition revenue and operating margins."
S&P also noted that following "significant leadership turnover due to operational irregularities," Iona's senior management team has stabilized and helped enhance operation procedures. The improvements include strengthening governance, increasing transparency in reporting methodologies and proactively managing transitional risks.
Iona was founded in 1940 and has an undergraduate enrollment of 3,539.
