S&P downgrades credit rating for Albany Law School
Standard & Poor’s has downgraded the outlook for Albany Law School, taking the school down from BBB/positive to BBB/stable. The credit rating agency cited lower enrollment and applications, and a resultant 2 per cent drop in net tuition revenue as the reason for the change.comments powered by Disqus
The S&P report indicates that the student headcount at Albany Law School decreased by 12 percent to 615 in the fall of 2012 compared to fall 2011, following decreases of 5 percent in each of the previous two years. The school plans to reduce the target for next year’s first-year headcount by nearly 50 per cent, from 250 to 130 students.
The BBB/stable rating reflects S&P’s opinion that the school has “healthy financial resources” and will stabilize enrollment. The school had a $2.3 million surplus in fiscal 2012 “due to conservative budgeting.”