Standard & Poor's Ratings Services said it revised the outlook to stable from negative on its A-minus rating on Lynchburg Industrial Development Authority, Va.'s series 2003 revenue bonds, issued for Randolph College.

The outlook revision reflects Standard & Poor's assessment of Randolph's increased financial resources; enrollment growth during the past two years; and net tuition growth in fiscal 2011, coupled with the rating service's expectation that enrollment and net tuition revenue growth will likely continue in fiscal 2012 and beyond.

At the same time, Standard & Poor's affirmed its A-minus rating on the college's bonds.

"The significant deterioration of financial resources or lack of enrollment and tuition revenue growth could pressure the rating over the next one to two years," said Standard & Poor's credit analyst Emily Avila. "We, however, believe a positive rating action is unlikely during the outlook's two-year period due to, what we consider, the college's high tuition discount rate and high endowment spending."


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