File this story under higher ed bubble.

Brittany Horn of the Times Union reports.

Moody’s downgrades College of Saint Rose

The credit outlook for The College of Saint Rose was downgraded by Moody’s Investors Service on Thursday night.

The Baa3 rating — the lowest investment grade available — reflects the school’s $56.9 million debt, declining enrollment and recent changes in leadership, according to Moody’s report.

The negative outlook comes from the fact that another downgrade, which would place the school below investment grade, is possible in the next 12 to 24 months if the college isn’t able to maintain its current situation, as well as improve its operating performance and stabilize enrollments, according to the report.

The Baa3 rating is one tier lower than the school’s previous rating of Baa2.

Lisa Thompson, assistant vice president for public relations and marketing at Saint Rose, said that while the college is disappointed with the rating, officials feel it is based largely on the past and not the future of the college.

What the report labeled as “challenges” Thompson said the school considers a part of the school’s reality right now and said many factors associated with the lower outlook are improving.

“It definitely is part of our financial picture but I think the most important part of strategic planning and moving forward is that we have, as Moody’s cited, clearly delineated plans for enrollment and our financial future,” she said.