Moody’s Investors Service Tuesday upgraded to B1 from B3 the rating on Southern California University of Health Science’s Series 1997 bonds and also revised the outlook to positive from negative on $7.5 million of outstanding bonds.
The two-notch upgrade and positive outlook reflect a turnaround in operating performance beginning in fiscal 2010, according to Moody’s.
The bonds were issued through the California Educational Facilities Authority,
The chiropractic school’s finances got some momentum when its only local competitor, the Cleveland Chiropractic College of Los Angeles, closed its doors.
Moody’s also credits a management-directed strategic plan that incorporates retrenchment and recovery efforts, modest growth in financial resources from land sales and operations, and continued reduction in debt.
These improvements are balanced by the fact that the school is still a very small university in a niche industry with speculative elements, according to the report.
