Fitch Ratings last week downgraded to B from BB its rating on $18.5 million of revenue bonds issued by the Nebraska Educational Finance Authority on behalf of Midland Lutheran College.

The credit action reflects Midland’s negative operating performance, its depletion of resources, and its apparent inability to correct its structural imbalance, analysts said. The fiscal distress was signaled last year in part by the school’s request to borrow $2.5 million against its permanently restricted endowment, according to Fitch.

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