CHICAGO - Standard & Poor's revised its outlook to positive from stable on the University of Central Missouri's A rating.
The action applies to debt sold through the Missouri Health and Educational Facilities Authority in 2012 and 2013.
Standard & Poor's also on March 3 revised its outlook to positive from stable on its A-minus rating for the university's 2009 educational
facilities housing system revenue bonds.
The differential on the bond ratings is due to a more limited revenue stream securing the housing bonds.
The rating agency views the security for the general educational bonds as an unlimited student-fee equivalent pledge of the university, since pledged revenues exclude only state operating appropriations and funds pledged to the payment of certain housing system revenue bonds.
"The positive outlook on UCM's educational facilities revenue bonds reflects our view of UCM's strong enrollment and operating trends, and growing financial resources," said Standard & Poor's analyst Shivani Singh. "Based on continued enrollment growth as anticipated by management, state operating appropriation increases, and generally conservative budgeting, we expect these positive trends to continue over the outlook period."
The positive outlook on the housing system revenue bonds reflects the school's favorable student demand for university housing, good historical debt service coverage, and strong university institutional characteristics.
