S&P Global Ratings affirmed its “A” long-term rating on Northern Michigan University’s series 2012 general revenue bonds and its “A” underlying rating (SPUR) on NMU’s series 2008 general revenue bonds.
S&P assessed NMU’s enterprise and financial profiles as strong. It cited three factors that have contributed to the university’s stability and countered declining enrollment: “healthy financial resources for the rating category with adjusted unrestricted net assets equal to 55.6 percent of operations and 108.1 percent of total debt; a stable and capable management team; and a growing, but small, endowment.”
General university revenue—tuition and fees, auxiliary services and other unrestricted reserves—secures the series 2012 and series 2008 bonds. Because of continuing demographic challenges related to enrollment, S&P Global Ratings projects a negative outlook.