Standard & Poor's Ratings Services said it has lowered its long-term rating and underlying rating on the Delaware Economic Development Authority's $97 million bonds outstanding issued for Delaware State University to A from A-plus.
At the same time, Standard & Poor's said it lowered its stand-alone credit profile on the bonds to a from a-plus. The outlook is stable.
"The downgrade reflects our opinion of ongoing operating deficits due to a constrained appropriation environment," said Standard & Poor's credit analyst Laura Kuffler-Macdonald. Although appropriations increased 4% in fiscal 2013 and they are expected to increase to $34.6 million for fiscal 2014, it is still below levels from before fiscal 2012, which has affected financial performance.
