Standard & Poor's Ratings Services said it lowered its long-term rating to A from A-plus on bonds issued for Yeshiva University, N.Y., by the New York State Dormitory Authority.

The outlook is stable.

"The downgrade reflects our assessment of the university's prolonged operating deficits, which are still negative on a cash basis and are taking longer than we anticipated to resolve," said Standard & Poor's credit analyst Carolyn McLean. "These deficits are now expected to continue for the next three years at least. Furthermore, the university continues to rely on a line of credit for operating cash, which we believe is a credit weakness."

At the same time, financial resource ratios have declined despite increases in endowment market value and proceeds from the sale of real estate, putting the university more in line with a lower rating.

Founded in 1886, Yeshiva University is a private university in New York City and has a campus in Israel. Fall 2013 enrollment was 6,745, of which 43% were undergraduates.

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