OREANDA-NEWS. S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A-' underlying rating (SPUR) on Texas State Technical College System (TSTC or the system), Texas' revenue financing system (RFS) bonds.

"The negative outlook reflects our view of TSTC's continued enrollment declines, coupled with a large deficit in fiscal 2015 and a sizable debt issuance in 2016 that has pressured pro forma financial metrics," said S&P Global Ratings credit analyst Ryan Quakenbush. "The rating further reflects a recent merger of all campuses into one accreditation and upcoming expansions into North Texas and Houston, as well as state appropriations that are expected to increase during the current biennium," Mr. Quakenbush added.

TSTC is the only state-supported technical college system in Texas. The system does not levy property taxes, unlike the state's extensive community colleges. TSTC, created in 1965 as part of Texas A&M University, became an independent higher education state system in 1969. Today, TSTC is a single, statewide college with ten campuses in Abilene, Breckenridge, Brownwood, Fort Bend County, Harlingen, Marshall, North Texas, Sweetwater, Waco and Williamson County.