Continued enrollment declines at the University of New Mexico have led Standard and Poor’s Global Ratings to lower the long-term bond rating for the state’s flagship institution.
But the financial analysts said the university stands to benefit from a recent proposal by the governor to create a scholarship making college free for state residents.
UNM’s S&P long-term rating went from AA to AA-, according to an S&P ratings report on UNM published Oct. 25. In the same report, the agency improved UNM’s ratings outlook from negative to stable.
“While a downgrade of any kind is never welcome, the university still has the highest rating of any higher education institution in New Mexico” said Teresa Costantinidis, senior vice president for finance and administration. “The stable outlook along with the potential of the Opportunity Scholarship, if passed, bode well for the university to reverse the enrollment trend.”