Shuttering Arts College’s Bond Ratings Slashed by Fitch

University of the Arts, a private college in Philadelphia, was downgraded to C from B+ by Fitch Ratings on Tuesday after the school announced it would close.

• The credit rating reflects “exceptionally high levels of credit risk” and “considers default to be imminent or inevitable”
• “The closure of the university’s operations, loss of accreditation, and statement from the board and management that the university is generally not able to meet payment obligations may lead to or constitute an Event of Default under bond documents that could trigger an acceleration of bond payments”: report
  • The next scheduled bond payment ...