Standard & Poor’s changed its outlook on NYSARC Inc. to negative from stable last week citing slightly lower levels of profitability and liquidity. Standard & Poor’s rates the nonprofit serving the developmentally disabled at A. The change affects $130 million of outstanding debt.
NYSARC was approved last month to sell $44.75 million of bonds through the Dormitory Authority of the State of New York.
The nonprofit reported a slowdown in revenue collections and changes in reimbursement that eroded its liquidity position in 2007. Those trends continued into 2008 presenting fiscal challenges, though audited data is not yet available, Standard & Poor’s said in a press release.
“We realize New York State has consistently provided NYSARC with an increase in year-over-year appropriations for its services. Given the unprecedented strain on the economy at both a national and state level, however, we are concerned about revenue growth,” analyst Jennifer Soule said in a release.
