Comments on: Cash flow problems in higher education Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 By: Cate_Long Mon, 31 Mar 2014 12:09:58 +0000 Moody’s has downgraded Yeshiva University several times over the last three years, most recently to B3/negative outlook. We have written this credit focus to better explain the rapid deterioration of the school’s credit quality.

The primary credit drivers are:

Poor financial oversight and high expenses caused deep and growing operating deficits that will continue:

Management’s unwillingness or inability to adjust the university’s strategic plan and business model, combined with weak financial reporting, led to six years of deficits.

Until there is a clear turnaround plan in place, the university will continue to face challenges to restore fiscal stability and further deplete already minimal liquidity levels.

Extremely thin unrestricted liquidity expected to remain weak: While the university’s total cash and investments are substantial, they are largely restricted.

High reliance on bank facilities adds additional risk to Yeshiva’s debt structure and the potential for near-term calls on limited liquidity: Access to bank lines is critical to the university’s near-term viability, but is uncertain at the B3 level.

The university’s limited headroom on bank debt covenants and potential for higher collateral requirements could further subordinate rated debt.

By: Goldburd Wed, 05 Mar 2014 05:18:53 +0000 Thanks for sharing with us these information. Really like your article. Great work .