HARRISBURG – Standard and Poor’s Ratings Services (S&P) announced today that it has lowered the long-term rating for HACC, Central Pennsylvania’s Community College, to 'A-' from 'A' on Pennsylvania State Public School Building Authority's college revenue bonds issued for HACC.
S&P publishes financial research and analysis on stocks and bonds. Credit ratings, such as what S&P reports, are used by money managers to help them make decisions about debt risk. The rating is applied to HACC’s $8 million in bonds to finance the Ted Lick Administration Building. This lower rating will mean a nominal increase in borrowing costs for the bonds.
Several factors led to the lowered rating. These factors included:
- Decrease in state and local funding
- Decline in enrollment
- Recent accreditation warning issued by the Middle States Commission on Higher Education
“The rating is the result of the current environment in which we are operating. As we resolve these issues, the rating will ultimately reflect that,” said HACC President John J. “Ski” Sygielski, Ed.D. “This is also a trend that is happening throughout the country, including Pennsylvania.”