Monday, February 1, 2016
Moody’s Downgrades California Western School of Law Bond Rating and Withdraws Vermont Law School’s Ba1 Rating For Business Reasons
Cal We$TTTTern Flushed!: On January 25, 2016, Moody’s published an item labeled “Rating Action: Moody’s downgrades California Western’s bonds to Baa3; outlook negative.” Enjoy the following portion:
“Moody's Investors Service has downgraded the rating on California Western School of Law to Baa3 from Baa1 reflecting materially worse than previously projected operating deficits. Operating pressure is likely to continue for a period longer than expected, leading to deterioration of spendable cash and investments.
The investment grade Baa3 rating is supported by the school's ample financial resource cushion to low amount of debt, conservative debt structure with good headroom on covenants, very healthy liquid reserves relative to similar rated peers, and stabilization of enrollments for this tuition dependent school.
The outlook remains negative based on weak prospects for net tuition revenue growth, our expectations that the school will continue to draw down on its reserves to support its rightsizing efforts and that operating performance will remain pressured in the near term.
Factors that Could Lead to an Upgrade
Sustained improvement to student demand including growth in net tuition revenue
Multi-year trend of improvement in operating performance
Factors that Could Lead to a Downgrade
Failure to meet projections for FY 2016 or failure to reduce deficits starting FY 2017
Greater than expected decline in liquidity
Declining enrollment” [Emphasis mine]
Don’t worry too much. The pigs will make sure to keep enrolling waterheads and those with borderline functioning IQ. Perhaps they will start recruiting from California halfway houses, mental institutions, and homeless shelters.
VermonTTT Law School Gets Power Flushed: On January 28, 2016, Moody’s posted a gem that was entitled “Rating Action: Moody’s Withdraws Vermont Law School’s Ba1 rating for business reasons.” Here is the substantive segment:
“Moody's Investors Service has withdrawn Vermont Law School's Ba1 rating on its Series 2011A bonds.
SUMMARY RATING RATIONALE
Moody's has withdrawn the rating for its own business reasons. Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.” [Emphasis mine]
That can’t be good news for a free-standing law school. Keep in mind that this trash pit has already experienced cutbacks to staff, as well as handing out faculty buyouts.
Other Coverage: The Washington Post featured a Jeffrey J. Selingo article, headlined “Three predictions about the future of legal education” – on January 27, 2016. Focus on the information below:
“Law schools are in deep trouble. Moody’s downgraded the California Western School of Law and gave the free-standing private law school in San Diego a “negative outlook,” adding that its financial pressures are “likely to continue for a period longer than expected.”
California Western is not alone in its struggles. Fewer students are going to law school and fewer graduates are obtaining the jobs that they went to law school to get.
During the past decade, the number of law schools increased by 9 percent, to 204, according to Moody’s, while the number of new students hit its lowest number since 1973, when there were just 151 law schools.
What’s more, the American Bar Association, which collects data on job placement, found that for the Class of 2014, just 60 percent were employed in long-term, full-time positions that require them to pass the bar nine months after graduation.
“The legal industry is experiencing a fundamental shift rather than a cyclical trend,” Moody’s said in a recent report about law schools.
But it seems everyone is aware of the changing (and depressed) job market for lawyers except for the people running law schools.” [Emphasis mine]
Apparently, the thieving “educators” are the last to know about the GLUTTED lawyer job market in the U.S. Then again, this is due to willful ignorance.
Conclusion: Both of these schools are steaming piles of rancid excrement. As you can see, US “News” & World Report ranks California We$TTTTern Sewer of Law as a FOURTH TIER TRASH CAN. However, USN&WR rates VermonTTT Law $chool as the co-122nd greatest, most amazing and wonderful law school in the entire country. Have fun trying to improve your bond ratings, bitches! Sadly, mental midgets will keep applying to, and enrolling in, these filthy, decrepit commodes.
Posted by Nando at 5:14 AM