ARKADELPHIA, AR (AP) - A credit rating business has downgraded Henderson State University's financial outlook from stable to negative.
The Arkansas Democrat-Gazette reports that Moody's Investors Service cut the Arkadelphia university's debt rating on Tuesday, citing "approximately $32 million of outstanding rated debt." Moody's also mentioned the university's "continued deficit operations" through the most recent fiscal year.
The New York-based company did affirm its previous A3 rating for Henderson's outstanding secured bonds that the university used to finance capital projects, including the acquisition and renovation of residence halls and campus apartments. An A3 rating is the lowest of Moody's A ratings, but it's still above the company's B and C ratings.
Henderson board chairman Bruce Moore said Wednesday the news was disappointing, but that the downgrade is consistent in higher education recently.
Copyright 2018 KAIT/The Associated Press. All rights reserved.