Fitch Ratings last week affirmed its B rating on Midland University and revised its outlook to stable.
The outlook boost comes as the school, formerly known as Midland Lutheran College, is enjoying the highest enrollment in its history as well as an improving operating profile, Fitch said.
The university has $17.5 million of revenue bonds issued by the Nebraska Educational Finance Authority.
Midland is a private liberal arts college in Fremont, roughly 30 miles from Omaha.
Student enrollment is 1,126, and expected to grow to 1,300 by 2014 due to aggressive marketing and a new MBA program, analysts noted.
Among the school’s challenges is a relatively high debt burden.
Annual debt service in 2012 totaled $2.1 million, nearly 9.4% of unrestricted operating revenue, down from nearly 14% previously, Moody’s said.
Debt service coverage from net income totaled 2.6 times.