Moody's Investors Service said it has downgraded Wittenberg University, Ohio's rating to B1 from Ba2.
The rating action affects $36.5 million of rated debt issued through the Ohio Higher Educational Facility Commission. The rating outlook is negative.
The downgrade to B1 with a negative outlook is driven by deeply structurally imbalanced operating performance, weakening balance sheet and liquidity, and a fragile market position.
The B1 rating also incorporates relatively healthy donor support and commitment from a new management team to balance the operating budget by FY 2017.
The negative outlook at the lower rating level reflects stagnant projected operating revenues for FY 2013 and weakened liquidity.
