CHICAGO -- Standard & Poor's has revised its outlook to negative from stable on Illinois Wesleyan University's A-minus rating on debt from a 2006 issue.
The rating agency took the action on April 17. The university's 2006 bonds were sold through the Illinois Finance Authority. The rating agency does not rate the university's 2008 variable-rate bonds and its 2012 bonds are rated A based on bank liquidity.
"The negative outlook reflects our expectation that the university will continue to experience operating deficits on a full accrual basis based on recent significant enrollment declines, continued declines in net tuition revenue, and deteriorating demand metrics," said Standard & Poor's analyst Ashley Ramchandani.
The rating is supported by the private, not-for-profit school's relatively solid financial resource ratios that are consistent with the rating category, successful completion of its capital campaign, and lack of additional debt plans.
"We will continue to monitor the university's progress toward 'right-sizing' enrollment and realigning its budget to improve operations," the agency said.
Wesleyan was founded 1850. The liberal arts college is located about 130 miles south of Chicago in the city of Bloomington.
