Monday, April 21, 2014
Flushing a Vile Green Turd: Moody’s Wipes Its Ass With Vermont Law School
The Commode is Downgraded by Two Categories: On April 17, 2014, the Vermont Digger published Anne Galloway’s piece, which was entitled “Moody’s downgrades Vermont Law School’s revenue bonds.” Take a look at this epic opening:
“Moody’s Investors Service, an investment assessment services company, downgraded Vermont Law School’s $10.3 million in 2011 revenue bonds this week. Moody’s lowered its rating for the school’s bonds from Baa2 to Ba1 this week.
The downgrade drops Vermont Law School by two rating categories. (See chart at end of article.)
TD Bank holds the bonds, which were issued by the Vermont Educational and Health Buildings Finance Agency.
Moody’s gave the school a negative outlook because a covenant written into the debt service contract requires that the school maintain a rating of Baa2 or higher. TD Bank could demand an accelerated repayment of the debt, according to Emily Schwarz and Edith Behr, the Moody’s analysts who authored the report.
The downgrade is based on “substantial declines” in law school enrollments because of reduced national demand for juris doctorate programs and an expectation that revenues from student tuition will be lower at Vermont Law School. This loss of revenue, Moody’s says, will put pressure on the school’s cash flow and debt service coverage.” [Emphasis mine]
You’re welcome, bitches! This truly is remarkable news. Hell, four years ago, ball-less shills kept saying that critics of “legal education” were wasting their time “crying” about the law schools. Now, we have turned the tables on the bitches and hags.
Nuggets From the Report: On April 14, 2014, Moody’s Investor Service released a rating action labeled “Moody's downgrades Vermont Law School to Ba1; outlook negative.” Check out this gem:
“The downgrade to Ba1 reflects continued substantial declines in JD enrollment given reduced national demand, expectations for lower net tuition revenue that will pressure cash flow and debt service coverage, and modest projected headroom on a financial covenant that may require an extraordinary release of net assets to remain compliant in the near term.
The Ba1 rating captures Vermont Law School's adequate liquidity coverage of demand debt and financial resource cushion for debt and operations, as well as management's demonstrated ability to manage through the past few years' weakened law school demand while maintaining stable cash flow. The rating also incorporates the school's small size and niche position as a standalone law school, modest financial resources, and high dependence on student charges.
The negative outlook reflects the potential for future erosion of the school's market position leading to weaker operating performance and erosion of financial covenant headroom that could jeopardize orderly access to the market or raise concerns about debt acceleration.” [Emphasis mine]
Did that info penetrate your tiny gray matter, Lemmings, shills, and law school pigs?!?! Moody’s sees this toilet as a bad bet. They specifically mentioned the status of the free-standing law school, as well as its limited cash flow.
If you were unable to comprehend the analysis above, then check out the following synopsis, under the category labeled Challenges:
“*VLS's very small operating size ($28.2 million in revenue for FY 2013), combined with a high dependence on tuition revenue, makes the school vulnerable to even a small decline in enrollment. Operating revenue declined 4% in FY 2013 and is projected to decline further in FY 2014.
*Provisions of the Letter of Credit and Master Trust Indenture introduce potential acceleration risk. Downgrade to below investment grade permits the letter of credit bank to accelerate $3.4 million in demand bonds. While we do not anticipate a financial covenant breach in the near-term, two consecutive years of below 1.0 times debt service coverage is considered an event of default.
*Net tuition per student has stagnated or declined for four years, and is projected to decline further in FY 2014 and FY 2015.” [Emphasis mine]
In sum, get used to the idea of “early retirement,” cockroaches. You vile bastards have been claiming for years that you are business enterprises. For $ome rea$on, the academic thieves “forgot” to mention that they were being propped up by the federally-backed, student loan $y$tem. Now, that potential applicants have caught onto the scam - thanks to the concerted efforts of many people - the money is getting tight for the law school swine.
Ranking: According to US “News” & World Report, VermonTTT Law $chool is rated as the 129th greatest, most stupendous and amazing law school in the land. In fact, it “only” shares this distinction with five other ABA-accredited cesspools. What a prestigious in$TTTiTTTuTTTion of “higher education,” huh?!?!
Conclusion: VermonTTT Law Sewer is in financial trouble. If you attend this trash pit, then you will likely end up using your law degree as toilet paper. That is about all it will be worth shortly. When employers hear the name of your school, they will recognize that this filthy commode has had staff cuts, faculty buyouts, and has had its revenue bond rating flushed two levels by Moody’s Investor Service. Good luck finding decent employment coming out of this pile of rancid excrement. The garbage heap already had a reputation lower than whale excrement. By the way, no one gives a damn if VL$ supposedly has the “best environmenTTTal law program” in the country. That is a mere marketing ploy to lure in naïve fools.
Posted by Nando at 5:25 AM