ORONO, Maine - A major credit ratings agency has downgraded its outlook for the University of Maine System.
Standard & Poor's Ratings Services cited continuing declines in enrollment and "significant turnover in leadership" as factors in its decision to revise the system's outlook from stable to negative.
UMS spokesman Dan Demeritt says the seven-campus system is working to address the issues that led to the downgrade. "The agency's decision to revise its long-term outlook is a realistic assessment of the demographic, fiscal and competitive challenges that led Chancellor Page and the board to launch a change initiative that will administratively and academically align our seven institutions into one university," Demeritt says.
S&P kept its AA- credit rating for UMS, but said this could fall to A+ during the next two years if enrollment continues to decline. A worse credit rating means the system would pay higher interest when it borrows money.