OREANDA-NEWS. S&P Global Ratings affirmed its 'BB-' long-term rating on Public Finance Authority, Wis.' series 2012 and 2015 bonds issued for Roseman University, located in Henderson, Nev. and South Jordan, Utah. The rating is removed from CreditWatch, where it was placed with negative implications on May 5, 2016. We resolved the CreditWatch action after receiving the required information from the university.

"The stable outlook reflects our expectation that over the next year, the university will experience continued strong demand for its programs and achieve surplus operating performance," S&P Global Ratings credit analyst Jessica Wood.

We have assessed the university's enterprise profile as very strong, based on its growing niche programs, strong graduate selectivity and matriculation rates. We have assessed Roseman's financial profile as vulnerable, based on the university's significant leverage, high maximum annual debt service burden and weak financial resource ratios. We believe the university's high amount of debt and aggressive growth strategy into a new line of business (a college of medicine) will heighten its risk profile, while the increase in operating expenses associated with the expansion could compress margins in the near term. When we combine the enterprise and financial profile, the indicative stand-alone credit profile is a 'bbb-'; however, because both the financial resources assessment and debt and contingent liabilities assessment scored a '6' under our criteria, the stand-alone credit profile is capped at 'bb+'. The current long term debt rating of 'BB-' better reflects the university's aggressive financial risk profile, in our view, as well as business disruption risk given the recent delay in accreditation for the college of medicine.