Higher ed bubble watch now in effect at Stonehill College.

Boston Business Journal reports.

Stonehill College is downgraded due to enrollment, margin concerns

Less than a week after Stonehill College reported year-over-year declines in revenue and its endowment value, Moody’s Investors Service has downgraded the local private school’s outlook to “negative.”

The credit-ratings firm cited enrollment volatility and related revenue issues for the downgrade, adding that “student demand” is challenged at Stonehill and is expected to weigh on the college’s operating margins for the foreseeable future.

“Expense control and resumed revenue growth will remain critical (this year) as the college faces a highly competitive student market,” Moody’s wrote.

The analysis was published a day before the Boston Business Journal detailed the extent of Stonehill’s financial troubles in the fiscal year that ended in June. The Roman Catholic college’s struggles largely stemmed from a poor investment performance that resulted in a $2 million year-over-year decline in its endowment. Those issues, combined with a 7 percent slide in the school’s net tuition and fee revenue, were among the factors touched on in the Moody’s analysis.

Stonehill did not offer comment on the Moody’s downgrade. The ratings firm’s commentary addressed the local college’s ability to repay bond holders, based on its recent historical performance.