OREANDA-NEWS. S&P Global Ratings lowered its long-term rating to 'BB' from 'BB+' on Buffalo & Erie County Industrial Land Development Corp., N. Y.'s series 2013 revenue bonds, issued for Medaille College. The outlook is stable at the lower rating.

"The downgrade reflects a four-year trend of declining enrollment, and three consecutive years of operating deficits that we expect to continue for the next two years," said S&P Global Ratings credit analyst Charlene Butterfield. We assessed Medaille's enterprise profile as adequate, characterized by a regional student draw and student quality that remains well below the national average. We assessed Medaille's financial profile as vulnerable, with a trend of moderate full-accrual deficits and modest available resource ratios for the rating category. Combined, we believe these credit factors lead to an indicative stand-alone credit profile of 'bb' and a final rating of 'BB'.

Securing the bonds is a general obligation and a mortgage lien on the central campus of the college.

Medaille College, in Buffalo, offers 17 bachelor degree programs, eight master's degree programs, one doctoral program, 11 online degrees, and four certificate programs.

"The outlook reflects our expectation that during the next year, Medaille's operating deficits will persist, that available resources will remain at or near current levels, and enrollment will show signs of stabilization," added Ms. Butterfield.

We could consider a negative outlook or lower rating during the next year if Medaille's enrollment continues to decline or if available resources deteriorate from current levels. Conversely, though unlikely, given the expectation that deficits will persist during the next year and enrollment has not yet stabilized, we could consider a higher rating if Medaille maintains operating results at break-even levels or better, if available resources grow from current levels and if overall enrollment grows.