Standard & Poor's Ratings Services said it revised its outlook to positive from stable on Florence-Darlington Commission for Technological Education, S.C.'s series 2005A special-fee revenue bonds, issued for Florence-Darlington Technological College.
At the same time, Standard & Poor's affirmed its A-minus underlying rating (SPUR) rating on the bonds.
"The positive outlook reflects our view of FDTC's recent enrollment growth as well as its balanced operations on a full-accrual basis, good revenue diversity, low debt burden, and adequate financial resources for the rating category," said Standard & Poor's credit analyst Jonathan Volkmann.
The potential cyclicality of the enrollment base and constrained state funding remain credit risks, but S&P expects the district to manage its operations and budget accordingly. The district has a high percentage of Pell grant-eligible students and a reduction of Pell grant funding due to any federal fiscal consolidation could be a credit risk. However, management indicated that the college is actively managing its cohort default rate and does not expect any issues.
Founded in 1963, FDTC is a two-year technical institute serving Florence and Darlington (A-plus general obligation debt rating) counties in northeastern South Carolina. The college is one of 16 that form the state's technical education system; a state board consisting of 10 governor-appointed members governs the system.
