Standard & Poor's Ratings Services said it lowered its long-term rating to A-minus from A on Hempstead Town Local Development Corp., N.Y.'s outstanding revenue bonds issued for Adelphi University.
The outlook is stable.
"The downgrade reflects that enrollment fell faster than we previously expected, in part because of increased competitiveness and declining regional demographics," said Standard & Poor's credit analyst Bianca Gaytan-Burrell. "The university has plans to expand enrollment for fall 2016 through global and out-of-state recruitment, a plan which we view as very aggressive," added Gaytan-Burrell. "In addition, operations are significantly below historical levels and do not offset the weakness in the balance sheet when compared with the 'A' medians. The current balance sheet now is more in line with the 'A-' rating and other colleges and universities in the region."
Founded in 1896, Adelphi University was the first institution of higher education on Long Island, N.Y. Its charter was one of the earliest charters granted by the New York State Board of Regents to a coeducational college. Today, the university's main campus is in Garden City, N.Y., with smaller centers in Hauppauge, Manhattan, and Poughkeepsie.
