Centre College of Kentucky's outlook was raised to stable from negative by Moody's Ratings Friday.
Moody's affirmed the college's Baa1 issuer and revenue bond ratings.
The outlook revision reflects prospects for moderating deficits, highlighted by gains in net charges per student, generally stable enrollment and strong philanthropic support, Moody's said.
Moody's said the rating is supported by the college's sizable wealth relative to scale, solid liquidity, and track record of philanthropic support, which contributes to solid revenue diversity.
The college, in a highly competitive student market, is aging but is making significant capital investments to address this and this will help its competitive position. The school has high financial leverage and limited expense flexibility due to its small scale.
Moody's said the college will have a slightly elevated endowment draw as it moves toward fiscal balance. In the meantime, it has moderate but improving operating deficits.
S&P Global Ratings rates the college's revenue bonds A with a stable outlook.
The college had $173 million of debt outstanding as of June 30, according to Moody's.
Centre College is a small, liberal arts college in Danville, approximately 35 miles south of Lexington. It had an undergraduate student population of 1,385 full-time equivalent students last fiscal year.
Moody's has
