Standard & Poor's Ratings Services said it has lowered its long-term rating to BB-plus from BBB-minus on the Educational Building Authority of the City of Marion, Ala.'s series 2010 bonds issued for Judson College.

"The rating reflects our view of the college's large fiscal 2012 operating deficit, which is likely a one-time departure from its historically balanced operations on a full accrual basis, but leaves Judson susceptible to increased credit risk when combined with already weak financial resources, a high maximum annual debt service burden, above-average endowment spend rate, and high debt level relative to size and budget," said Standard & Poor's credit analyst Avani Parikh. "In addition, for the past two years, the college has increased its reliance on its lines of credit to support working capital needs, which we believe limits cash flow flexibility," said Parkih.

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