CHICAGO - The Minneapolis College of Arts and Design's growing enrollment numbers and improved cash flows and debt service coverage prompted Moody's Investors Service to revise its outlook to stable from negative.
At the same time, Moody's affirmed the college's Baa2 rating on $8.9 million of rated debt.
"The revision of the outlook to stable is based on resumed enrollment growth and continued expense management, resulting in improved operating cash flows and debt service coverage," Moody's analysts wrote in the report Jan. 7.
The college moved to turn around its operations after a fall 2011 enrollment decline. The rating reflects consistently positive operating performance and good financial reserves relative to the college's relatively small scope of operations and limited outstanding debt.
The rating also considers the unique and highly competitive student market in which the college operates, small size, and heavy operating reliance on student charges.
