Moodys Investors Service last week affirmed Maryville University of St. Louis Baa2 rating and revised its outlook to stable from negative.
The action impacts $23.2 million of outstanding debt sold through the Missouri Health and Educational Facilities Authority in 1997 and 2000.
The stable outlook is primarily based on improved operating performance, with the university reporting its first operating surplus in four years, Moodys analysts wrote.
For fiscal 2003, the school reports a 1% operating surplus, marking a significant improvement over the last four years, during which it posted an operating deficit. The highest deficit was seen in fiscal 2000 at 13.3%.
Moodys is expecting similarly balanced operating performance in FY 2004, analysts wrote. Improved operating performance was achieved through a combination of revenue growth and expense reductions, including a faculty early-retirement program.
The school is located about 20 minutes from downtown St. Louis and attracts non-traditional students because it offers flexible schedules, including weekend classes. The school has 2,210 students.
