ORONO — Standard & Poor’s is downgrading the University of Maine’s long-term outlook from stable to negative.
The Portland Press Herald reports the credit rating agency cites declining enrollment and high turnover among leadership at the system’s seven campuses. The agency says the university system’s credit ratings on outstanding revenue debt and $46.24 million in 2015 bonds both remain at AA-.
The downgrade means Standard & Poor’s thinks the rating could be downgraded to an A+ if enrollment continues to decline alongside falling tuition revenue.
System spokesman Dan Demeritt says the fact that the rating itself is unchanged reflects the system’s “commitment to sound fiscal management.” A worse credit rating would mean the system would pay higher interest when it borrows money.
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