Moody’s Investors Service this week revised its outlook to negative from stable on DePauw University’s A2 credit due to operating deficits. It has about $100 million of rated debt sold through the Indiana Finance Authority and the Indiana Educational Facilities Authority.

Analysts attributed the stable outlook to a 12% operating deficit for fiscal 2008 and a high reliance on gifts to fund ongoing operations that, combined with investment losses during fiscal 2009, have caused balance-sheet deterioration. DePauw also experienced some volatility in enrollment in 2008 but has shown improvement for fall 2009, Moody’s said.

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